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Beth A. Botti, CFP®, ChFC, CLU, CDFA™

Financial Consultant

California Insurance License #0G24537

 

612 Wheelers Farms Road, Milford, CT 06460

 

Phone:  203-877-6556 Ext. 169

Fax:      203-301-0736

Email: beth.botti@equitable.com

September/October 2017

Let's talk insurance Q&A

Lets talk insurance QA

Q.

I want to buy a term life policy, but I am not really sure how to choose the right term. What should I look for?


A.

Like most people, you are probably buying term life insurance to help ensure that your dependents will be able to maintain their lifestyle in the event of your death. So, your first step in choosing a term is to determine how long you will need to be insured. Think about your financial commitments — a mortgage, support for minor children, health care expenses, future college expenses, etc., — and how long each of those commitments will last. It may be useful to consider the cost of hiring outside help to replace any nonfinancial contributions you make, such as child care, for example. Your final step is to choose a policy with a term that matches your time frame for protecting your dependents from financial hardship.


Q.

Do beneficiaries have to take a life insurance payout in a lump sum?

A.

No, it’s generally not required. There are a variety of ways your beneficiaries might be able to receive their settlement. These include:
  • The annuity option, in which the proceeds and the interest are used to provide regular payments to the beneficiary for the remainder of his or her life.

  • The lump sum option in which the insurance company makes one single payment of the death benefit to the beneficiary when the insured dies.

  • The interest option whereby the insurance company holds on to the policy proceeds in trust for a specified time and pays the beneficiary only the interest that the policy proceeds earn. The death benefits are then payable under a life income plan.

  • The fixed amount option in which the insurance company pays benefits in fixed amounts at scheduled intervals until the proceeds and the interest run out.

  • The fixed period option in which the proceeds and interest are paid to the beneficiary at regular intervals for a fixed time period.



FINRA Reference FR2017-0427-0092/E 08/02/17

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Duly registered and licensed financial professionals offer securities through Equitable Advisors, LLC (NY, NY 212-314-4600), member FINRA,SIPC (Equitable Financial Advisors in MI & TN), offer investment advisory products and services through Equitable Advisors, LLC, an SEC-registered investment advisor, and offer annuity and insurance products through Equitable Network, LLC (Equitable Network Insurance Agency of Utah, LLC in UT; Equitable Network of Puerto Rico, Inc.). Equal Opportunity Employer - M/F/D/V. Equitable Advisors and its associates and affiliates do not provide tax, accounting, or legal advice or services. Representatives may transact business, which includes offering products and services and/or responding to inquiries, only in state(s) in which they are properly registered and/or licensed. Your connection to this website does not necessarily indicate that the sender is able to transact business in your state. The information in this website is not investment or securities advice and does not constitute an offer. For more information about Equitable Advisors, LLC you may visit https://equitable.com/crs to review the firm's Relationship Summary for Retail Investors and General Conflicts of Interest Disclosure.

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CFP®, and CERTIFIED FINANCIAL PLANNER™ are certification marks owned by the Certified Financial Planner Board of Standards, Inc. These marks are awarded to individuals who successfully complete the CFP Board's initial and ongoing certification requirements.

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