Do I Need Life Insurance?

The answer to that question will always be what you feel is best for you.
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​Here are some questions you can ask yourself to help you decide:

​Do you have any savings set aside for the people you care about?

It is not uncommon for some families to have little to nothing left after bills to save enough for an emergency fund.​

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God forbid you are not able to work due to a long term injury will your family be able to live the same lifestyle as they do now?

Most people don't realize the little luxuries that make up their lives like being able to  go to the movies once or twice a month, that latte every morning before work, or family dinner in a restaurant every now and then.

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​If you pass away can your family make rent or mortgage payments and take care of other necessary costs that come up in day to day living.
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​For example are you responsible for paying for groceries and utility bills?

Once you start making these calculations it will become more evident how important a policy could be for your family in case something happens to you.

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Do you have a clearly defined, detailed account of your monthly expenses?

Knowing exactly how much of your money is allocated to what bills will help you determine if you need insurance and how much insurance you can afford if needed.

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​Do you have a clearly defined, detailed account of all of your monthly income and cashflow?

This should include all incomes, whether it be from your job, side business or profits you receive from any investments accounts.

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Do you pay attention to the details?

To most people, insurance companies have a bad reputation for not paying claims and not giving the benefit amount that the insured thinks is promised to them.

Make sure you ask questions and have the insurance agent show you a documented report of the benefits you will have before you make your first premium payment.

This way you know exactly when and how much that you or your beneficiaries will be paid depending on different situations and scenarios, like death or injury. 

The man in the white shirt smoking a cigarette will likely pay a higher premium than a healthier non-smoker his same age.

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Term Life, Whole Life or Universal Life?

​What Kind of Life Insurance is Best for Me?

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Term Life Definition:
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Life insurance that pays a benefit in the event of the death of the insured during a specified term. 

Usually the least expensive type of insurance policy because your premiums aren't used to grow cash value.

Benefits are only given to you or your beneficiaries during the length of the term period. If you out live the term period (5, 10, 15 20 years or more) then the benefit no longer applies.

However you can receive all of your money back that went into premium payments if you chose to have a Return of Premium (ROP) rider.

Younger adults usually purchase term life because:

• It is the least expensive.
• Younger people believe they have more control of their health and don't need to pay higher premiums.
• They know most term life policies can convert into a whole life policy without new evidence of insurability

Whole Life Definition:
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Life insurance that pays a benefit on the death of the insured and also accumulates a cash value.

Whole life insurance is usually the preferred choice because people want their premiums to grow cash value that they can use for future life emergencies or just to have on hand.

Because whole life policies grow cash value the premiums are more expensive than term life premiums.

Most experts will tell you a whole life policy is a great option if you don't do anything else to receive extra cash flow throughout your life.  

Savings rates have never been lower and if you don't have an extra source of income, such as a side business or cash flow from investments then a whole life policy is a good way to earn cash value from your premiums as well as having a substantial cash accident or death benefit.

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Universal Life Definition:
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Universal life insurance is a type of flexible permanent life insurance offering the low-cost protection of term life insurance as well as a savings element (like whole life insurance), which is invested to provide a cash value buildup.

Universal Life premiums are tied to the stock market so if your premiums are invested in rising stock markets you can have a higher cash benefit for your insurance policy.
On the other hand if the stock market falls, the insurance company will limit the loss exposure to you. In other words, the value of your universal life insurance policy would never be lower than the contracted guaranteed minimum benefit amount.

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How Does an Insurance Company pay larger benefits of up to $250,000 or more?

A life insurance company pools the premiums they receive from their clients and they place these premiums into what are considered safe investments. 

The reason why Mary, a 40-year-old, non-smoking female can get a $250,000 cash benefit amount paying $99 a month is because her life insurance company has calculated how soon they would have to pay this benefit to Mary.

Her insurance company has pooled her premiums with others in similar life situations as Mary's. Based on demographics, health history, lifestyles and past records, insurance companies calculate the average life expectancies of all their clients.  

Insurance companies hire people trained at figuring out the profit they will receive from investing paid premiums of their clients and how substantial of a cash benefit they can give back to the client based on the clients average lifespan and past medical history.

In other words, with a group of a thousand 40 something year old non-smoking females, insurance companies know how much profit they will receive from premiums invested before they have to pay the contracted benefit amounts to the insured.

The blunt truth is that if 1 or 2 clients pass away several months apart 20 years from now it likely won't hurt the insurance company financially.

This is the major reason why life insurance companies will not cover natural disasters like floods or earthquakes because there is a higher possibility that more of their clients will die at the same time causing a huge financial loss to the insurance company.

That sounds like a cold thing to say but insurance companies have to make sure they can pay their clients back the promised benefits without going out of business.

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Simple Math: Is The Cash Benefit I Would Get Worth The Insurance Premiums I would Pay?

When I see a person or a couple interested in life insurance information, I ask them: Why do they think they may need life insurance?

​The typical answer is 'I want my wife (husband or children) to be financially protected in case I am no longer around or I can't work.'

Some people live paycheck to paycheck and haven't set money aside for important purchases while others have plenty of savings and investments to use towards a life insurance policy. 

There is no 'one size fits all' answer here. Insurance companies offer a range of benefits, the bottom line is most people are interested in how much can their family benefit and is that benefit worth the premiums paid?​ 

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So Do I Need Life Insurance?

Not everybody NEEDS life insurance but I believe it is a nice benefit to have as a bonus for some, if not, most people.

For others, especially those that live paycheck to paycheck with very little savings, it is more important that you consider life insurance as a form of financial protection for you and your family. 

Consider if you can comfortably set aside money for premiums. Then figure out all the details of the benefits you can get with your paid premiums. 

An insurance policy is not meant to be a get rich quick plan. It is meant to be used as protection, your beneficiaries can use the cash benefit to better themselves and pursue their goals and dreams, they can use the cash benefit to help them go to college or become an entrepreneur and build a business.  

​However the cash benefit to your beneficiary is primarily meant to help them live the life they are used to when you were around.

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For More Information Contact Me...

I am licensed to sell life insurance in New York, Pennsylvania, Maryland, Virginia and South Carolina and I visit each of these states frequently.

​If I am not in your local area then I can refer you to a trusted professional that can give you the information you need to make an informed decision.

Happy New Year! May your choices bring you satisfaction in your life!

Contact me with your questions or to setup an appointment:


Ricky Moore
[email protected]
240-644-4376 (Cell Phone)

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Here Is Some General Information From The 2 Most Accepted Insurance Company Policies That I Sell

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Foresters Financial

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United Home Life
(Not Available in New York)

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Coverage for Insulin Dependent Diabetics

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Ricky Moore
240-644-4376 (Cell #)
[email protected]