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Which Insurance Policy Is Best for You

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How to determine, according to New York-based John Savignano

According to John Savignano CPA, “Iinsurance is very powerful in terms of what you can do with it. And he shares his knowledge on how to choose the best policy and make it work for you.

The purchase of a life insurance policy can be prompted for various reasons. Because every person’s situation is different, determining the right one means understanding what the insured hopes to achieve with the money when he or she dies.

John Savignano’s approach to finding the perfect policy

CPA John Savignano, CEO of Bottom Line Consulting, became interested in finance when his grandmother gave him some money to invest for her. Since then, he has honed and expanded his financial skills while building a level of trust among his clients.

As the founder and chairman of Savignano Accountants & Advisers, John Savignano offers a range of financial services including business valuation, accounting and information technology for clients in the greater the city of New York Surface. His focus is on getting a clear picture of where each of his clients are so he can craft the ideal financial advice.

Protecting Loved Ones: The most common reason to buy life insurance

According to John Savignano, the main reason given for purchasing life insurance can be stated very simply: “When someone’s loved one dies, you want to make sure that the survivors can survive.” To find the policy that is best for a specific individual, it is necessary to dig deeper.

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A married person with one or two young children who is the sole breadwinner has very different needs than someone whose spouse also works while they send their children to college. For the first scenario, term life insurance may be the right choice.

Says Savignano, “Term life insurance is very cheap. Maybe a few hundred euros a year [you] can buy, especially if you are young and in good health. For a few hundred dollars a year you can buy a $500,000 policy. This type of insurance is generally affordable and allows the insured to purchase a significant amount of money life insurance at a budget-friendly price.

As one ages, a permanent life insurance policy that offers the option of a cash payout may better suit the insured person. A permanent life insurance policy pays a death benefit regardless of when the insured dies. There is also a savings element to this type of life insurance policy.

Say Savignano, “A universal life insurance policy acts like a bank account. So it could be another type of asset investment for you that if you want to put money away, it’s like a deferred retirement account could put money away. The income can be generated tax-free.”

Protecting a business interest

Another way life insurance can be used is to protect applicable interests within a company. If one of the partners dies, the other can buy out his interest in the business and keep it running as intended. Without the right type of life insurance policyhowever, the business could fail – and may not recover at all – as the estate works its way through court.

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Inheritance tax hedging

While it has long been used by the wealthy as a hedge against estate taxes, this strategy can also be used by others as a way to build wealth. By purchasing generous life insurance policies, the insurance company pays the estate tax upon the death of the insured.

“If you decide you don’t want to have a will or some kind of estate plan, think about the position you’re putting your loved ones in just in case someone takes you.” Savignano warns.

Gradually, the money that the insured pays to the policy grows and worsens. It has been used by people to accumulate huge wealth in a simple and understated way.

Estimation of life insurance needs

Some people buy life insurance to ensure that their final expenses are paid and do not become someone else’s responsibility. However, for most people, their reasons for purchasing this type of insurance cover several goals.

Consider the following factors when thinking about how much life insurance you should buy.

Income

Consider not only how much income the insured adds to the household, but also how long that money will be needed by surviving relatives. A good way to think about it is to multiply the insured person’s annual income by the number of years until their youngest dependent graduates from high school.

Dependent Education

If a dependent attends a private school and/or the insured wants to make sure there is enough money for college, the amount of the life insurance policy should reflect that. College costs can vary widely, but aiming for $150,000 for each dependent is a good place to start.

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debts

In addition to credit cards, vehicle bills, personal loans, and other types of debt, it is crucial to determine the actual payout amount for a mortgage. Many people also have a second mortgage or a surplus value.

Adding all the debts an insured has will help determine the right type of life insurance vehicle for their specific situation. Include at least $10,000 in this figure for their final expenses.

It is important to note that the money aspect is not the only consideration to consider when determining the best life insurance policy. The key is to look at other elements in the insured’s life – for example, aging parents, a disabled child, or business ownership – that can affect the type and amount of coverage needed.

Looking at both the big picture and the little details – and how they all connect – ensures that the insured has the coverage needed in the unfortunate event of death.

And find a consultant like John Savignano.

“I have the trust factor with my customers. I think I can do a better due diligence to determine whether or not they need a policy and what policy they need and actually sit down with them and inform them about that and get them the right policy. giving and making sure it’s a good long run. term suitable for them,” he says. “And that’s pretty much why I got into this.”

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