Life Insurance - Your First Step to Financial Growth

Life insurance is the foundation of a sound financial plan. It provides financial security for your family by protecting your financial resources, such as your present and future income, against the uncertainties of life.

More specifically, life insurance provides cash to your family after your death. This cash (the death benefit) replaces the income you would have provided and can meet many important financial needs: It can help pay the mortgage, run the household, send your kids to college, and ensure that your dependents are not burdened with debt. The proceeds from a life insurance policy could mean that your family won't have to sell assets to pay outstanding bills or taxes. What's more, there is no federal income tax on life insurance benefits.

Most people with dependents need life insurance. While there's no substitute for evaluating your specific situation, one rule of thumb is to buy life insurance equivalent to five to ten times your annual gross income. To determine how much, if any, life insurance you need, start by gathering all your personal financial information and estimating what your family will need after you're gone. Include ongoing expenses (such as day care, tuition, or retirement) and immediate expenses at the time of death (like medical bills, burial costs, and estate taxes). Your family also may need funds to help them readjust: perhaps to finance a move, or pay expenses while job hunting.

The best way to evaluate your specific needs is to contact a life insurance professional like us.

Choosing a life insurance product is an important decision, but it can be complicated. As with any major purchase, it is important that you understand your family's needs and the options open to you.


Why do people fail to plan?

Don't know how
Like most things, financial planning is a process that you must learn to use properly. Many people have never been exposed to this process. They really don't know how to produce and maintain a personal financial plan. As a result, they just don't plan at all!

Lack of specific goals and objectives
There's no reason to plan if you have no particular goal or objective in mind. Broad statements like "I just want to be able to retire!" are not focused enough to set a plan in motion. Instead, you must ask yourself specific questions like "When do I want to retire? What kind of lifestyle do I want?". Only then will you have a reason to plan.

A multitude of investment choices
There are so many different ways to invest your money that it can be difficult to decide what financial products will best suit your needs. Some have more risk than others but can offer higher returns while others can provide you with the flexibility you need to meet your ongoing and future needs. It's not an easy choice - one that can cause a great deal of confusion and frustration!

Complexity of tax laws
As you can well imagine, the laws regarding taxes are often as detailed as they are complex. While these laws can certainly be intimidating, it's really no reason to avoid planning your future. Fortunately, We are experts who understand how to use these tax laws to your financial benefit. They can help shelter your money from taxes and make the most of every dollar.

What next?
A OM Financial agent is the key to beginning a plan, getting relevant information about the choices available, and to accessing all the benefits of OM FINANCIAL.