SERVICES : Financial Services THE HIGH COST OF LOW COVERAGE Oct 12, 2007 by More than 40% of U.S. households believe that either they need to buy life insurance or they need to increase their existing coverage. The average difference between the amount of coverage they think they need and what they actually own is about $200,000.1 Why do people who know they are underinsured fail to address the shortfall? The decision to buy life insurance is imbued with complexities that go far beyond dollars and cents. Here are some common objections to purchasing life insurance. Do any of them sound familiar? “It won't happen to my family.” It’s true that the U.S. death rate is fairly low. For people between the ages of 35 and 54, there are about 307 deaths per 100,000 people per year.2 Nonetheless, you probably know of someone who died young and left dependent family members behind. It might not happen to your family, but what if it does? “I can't afford any more insurance.” Regardless of the cost, you wouldn’t dream of going without auto, homeowners, and health insurance coverage. But the cost of your not carrying adequate life insurance could be far more expensive to surviving family members than the cost of the additional premiums. “It’s too complicated. I don’t have time today.” There’s no doubt that buying life insurance takes some effort. In our busy world, it’s easy to find something else that seems more pressing. But as we get older, life insurance tends to become more expensive, and there is an increasing chance that health issues could complicate the purchase. The cost and availability of life insurance depend on factors such as age, health, and the type and amount of insurance purchased. Before implementing a strategy involving life insurance, it would be prudent to make sure that you are insurable. As with most financial decisions, there are expenses associated with the purchase of life insurance. Policies commonly have mortality and expense charges. In addition, if a policy is surrendered prematurely, there may be surrender charges and income tax implications. 1) LIMRA, 2006 2) National Center for Health Statistics, 2006
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Montgomery Insurance and Investments Agency, Inc. is a locally owned and operated independent insurance agency with specialists in personal and commercial insurance, financial services including investments and employee benefits. They have two conveniently located offices in the downtown areas of Jamestown and Xenia.
Left to right: Jim Saner, Eric Montgomery, Brad Montgomery and Roy Montgomery. "Prompt efficient service." - Paul & Edith Calloway DISCLAIMER - Securities and investment advisory services offered through Tower Square Securities, Inc., a member of FINRA / SIPC. Montgomery Insurance and Investments Agency, Inc. is not a registered investment advisor or a securities brokers dealer and has no affiliation with Tower Square Securities, Inc. Eric Montgomery is licensed in AL, CA, FL, GA, IL, IN, MA, MI, MO, NC, OH, VA, VT, WI, WV for the sale of security products. Roy Montgomery is licensed in OH for the sale of security products. Don Cain is licensed in OH for the sale of security products. |
| Xenia: 114 South Detroit Street • Xenia, OH 45385 • (937) 372-7646 Jamestown: 1 West Washington Street • Jamestown, OH 45335 • (937) 675-9321 |
| CD200601302 Exp 07/2007 |