Catholic Financial Life Blog

Life Insurance – The Ultimate New Year’s Resolution

Posted by Catholic Financial Life

Jan 22, 2018 10:33:05 AM

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The New Year means new resolutions. While many people focus on losing weight or quitting smoking, why not consider trying something different? This year, make a commitment that will protect your family. Make a resolution to get life insurance. You may be asking yourself, “what type of life insurance is best suited for my family?” This blog will provide you with basic information on the different types of life insurance to help you decide.

Types of Life Insurance

  1. Whole Life Insurance

Whole life insurance provides dependable, lifelong, and easy-to-understand insurance coverage.

  • A level premium that is guaranteed never to increase for life.
  • It's ideal for someone who wants lifelong coverage.
  • Cash value begins to accumulate after a few years.
  1. Term Life Insurance

If you need coverage but have a limited budget, term life insurance might be a great choice for you.

  • It's temporary. You can purchase it for ten-, twenty-, or thirty-year periods.
  • There's no cash accumulation. With term, you are paying for coverage only and not building any cash value like a whole life insurance plan will do. Think of term insurance as "renting vs. buying." When it expires, it's done.
  • Your payments are often cheaper than with other insurance options.
  1. Universal Life Insurance

Universal life insurance is somewhat of a mix between term and whole life insurance. If you want more flexibility with your life insurance plan, consider universal life insurance.

  • You can pay in level premiums, or you can increase and decrease payments at different times in your life. In addition, you can increase and decrease coverage as your level of need changes.
  • Your net premiums go directly into the cash value and earn interest at a guaranteed rate.
  • Deductions from your cash value are made to cover the cost of the death benefit and expenses.

To learn more about life insurance, contact a Catholic Financial Life advisor at 1-800-927-2547 or visit https://join.catholicfinanciallife.org/contact_advisor

 

Products are not available in all states. Catholic Financial Life is not licensed in all states. Nothing contained herein should be construed as solicitation for insurance, financial products or annuity products in any state in which Catholic Financial Life is not licensed. 

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Topics: Life Insurance, Financial Security

Critical Illness Insurance: Because surviving can be financially devastating

Posted by Catholic Financial Life

Nov 9, 2015 6:00:00 PM

Over two-thirds of bankruptcies among American families result from medical bills.

Thanks to modern medical technology, your chances of surviving cancer, a stroke, kidney failure, a heart attack, or other physical illness are better than ever. But are you prepared to handle the financial toll your medical bills will bring in the coming years? If your family would suffer financially from a recovery, you need critical illness insurance, the latest financial product from Catholic Financial Life.

The History of Critical Illness Insurance

The idea for this insurance plan originated from Dr. Marius Barnard, a South African heart surgeon who witnessed first-hand the financial suffering survivors of heart attacks endured. Of course, it was a good thing that more and more people were surviving heart attacks, but the medical bills that followed in years of recovery were nearly killing them. Barnard worked with insurance companies on a new product to address these patients' needs. "Dread disease" insurance was launched in 1983. He has travelled to countries around the world promoting this insurance plan.

What Sets Critical Illness Insurance Apart from Life Insurance?

With life insurance, your family doesn't reap the benefits until a death occurs. Critical illness insurance, on the other hand, lets you take advantage of your investment while you're still living. Without having to go through underwriting and other standard insurance approval procedures, you receive a lump sum cash benefit upon diagnosis of a critical illness. Heart attack, cancer, and stroke are most common, representing 85 percent of the claims, and renal failure and organ transplants are also common coverages.

Flexibility is perhaps the best part about critical illness insurance. You can spend your lump sum cash benefit on anything you please. If you need help taking care of a spouse who has suffered a stroke, you can hire an in-home private nurse. If you have just been diagnosed with cancer and want to give your family some much-needed fun and relaxation, you can take a vacation.

In addition, you can receive 100 percent of the benefit as much as three times. Critical illness insurance is split up into three categories: cancer, heart attack and stroke, and other illnesses like advanced Alzheimer's or kidney failure. If, unfortunately, you suffer from more than one illness, you will receive 100 percent of your benefit for each illness, as long as they fall within different categories. You do not need to pay a higher premium to receive this benefit.

Why You Should Have It

Modern medicine and technology has dramatically changed the financial profit landscape. In the words of Dr. Barnard, "You need critical illness insurance not because you are going to die -- but because you are going to live." Here are some statistics that might further convince you about the importance of critical illness insurance.

  • Medical problems contribute to up to 62 percent of personal bankruptcies.
  • Approximately 90 percent of disabilities are caused by illness rather than injury.
  • Nearly 1.4 million Americans suffer a heart attack each year. The odds of dying have decreased by 63 percent since 1950.
  • The average brand name cancer drug in the U.S. costs $10,000 per month.
  • The average cost of treating a heart attack in 2011 was $72,000. For a stroke, it was $61,000.
  • Most Americans have around only $10,000 in emergency-fund savings.

How Much Coverage You Should Have

People ages 18 to 64 can purchase critical life insurance. Coverage can be renewed until age 75. The sooner you have it, the better. Benefit amounts range from $5,000 to $50,000, so how do you know how much coverage is right for you? A good rule of thumb for figuring this out is to take the amount you would spend on six months of your mortgage payments or rent. If you pay $1,000 per month for your apartment, you would spend $6,000 on your critical illness insurance. If you pay mortgage on your $1 million home, your insurance investment would obviously be much higher.

You may think that you can't afford to have critical illness insurance, but really, you can't afford not to have it.

Contact an advisor about our your retirement options

 

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Are Your Financial Priorities Out of Sync?

Posted by Catholic Financial Life

Oct 19, 2015 5:30:00 PM

A new house, a shopping spree, the latest smartphone, an island getaway vacation -- sure, these are all fun ways to spend your hard-earned money, but make sure you're getting your priorities straight. In a tragedy, would your cable TV or brand new car protect your family's financial future?

Millenials and Gen Xers believe that it's more important to pay for things like internet and cable, vacations, shopping and eating out, and new cars, homes, and boats than to purchase life insurance, according to a 2015 study from Life Happens and LIMRA (Life Insurance Marketing and Research Association).

Of course, many people of these generations also recognize the importance of setting aside money for things like college savings funds, mortgage and groceries, paying off debt, and retirement, the study showed.

However, one vital piece of this financial puzzle is missing. What if you or your spouse passed away, or suffered a severe injury and could no longer work? How soon would you feel the impact of this loss? The income you rely on for all of these things -- from your iPhone to your home -- would disappear. Unless you make life insurance your top financial priority.

Don't let the cost of life insurance scare you away. In fact, most people are unaware just how affordable life insurance really is. And when you need them, the benefits will greatly outweight the costs.

Contact a Catholic Financial Life advisor today to learn how you can make a life insurance plan or more life insurance coverage the most essential part of your family's financial future.

out_of_syncContact an advisor about our your retirement options

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The Importance of Life Insurance at Every Stage

Posted by Catholic Financial Life

Sep 27, 2015 10:25:00 AM

 A multi-generational family enjoys the benefits of life insurance.

Through all of life's milestones, with every major financial decision, a life insurance policy from Catholic Financial Life is important. If you’re 18 or 81, read to find out why you need life insurance today. 

Children

When you buy a life insurance policy for your newborn infant, you lock in the lowest-possible payment rate, ensuring the best for your child’s future. As your children grow and attend school, you must own a life insurance policy for them for them to be eligible for our scholarships and other educational benefits.

Young adults

It’s no secret that college graduates these days have more debt than ever before. Catholic Financial Life can help you make a financial plan to make the process off paying off these loans as easy as possible. At a young age, life insurance is very affordable and lays the foundation for a life of smart financial decisions.

New families

Newlyweds should purchase a life insurance policy to make sure that in the case of the death of a spouse, the surviving spouse does not have to deal with the burden of paying off bills. When baby makes three, Catholic Financial Life’s policies help new parents protect their income and begin funding their child’s college education. In other important milestones in the life of a new family, such as buying a home, Catholic Financial Life assists in paying off a mortgage and any other debts.

Middle-aged adults

The life insurance you bought as a young adult or newlywed may need sprucing up. Make sure you still have enough and the right kind of coverage. For business owners, a life insurance policy provides the funds necessary to keep your business running even after you die. If you find yourself unemployed at any point in your life, your old employer may have been your life insurance supplier. In that case, you need to purchase a new plan.

Senior Citizens

Make sure you have a life insurance policy to assist with the loss of pension and Social Security. Your coverage will also help your loved ones with your burial and funeral expenses. Charitable people, investing in life insurance now will allow you to leave a generous donation to a church, school, or organization when you pass away. In a similar way, the wealthy can benefit from financial membership with Catholic Financial Life because we can help you pass on your estate efficiently, avoiding large tax payments.

Contact an advisor about our your retirement options

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How to Start a Conversation that Matters

Posted by Catholic Financial Life

Sep 25, 2015 4:30:00 PM

It’s September, the start of a new school year. Before you know it, your college graduate will head out into the real world to make a difference. It’s never easy for a parent to see a child become more and more independent, only praying that they are ready to be on their own and face the challenges that lay ahead.

Do you have a graduate, a soon-to-be graduate, or recently-graduated graduate? You've probably already had the serious conversations about what their plans are for after graduation and securing a job. But have you talked about life insurance?

Starting a discussion about life insurance is never easy because it involves something we don’t want to talk about—death. What would happen if we suddenly left behind those we love the most? Life insurance isn’t going to benefit you in your lifetime, but it will protect your family in the event of your passing, with you knowing that they will be financially supported even in your absence. ThinkstockPhotos-dv1850043

A recent study revealed that many parents would rather have a discussion with their children about basically anything else—drugs, alcohol, religion, politics, and other taboo topics. But why? Thinking about our own mortality is unsettling, and no one enjoys talking about it, especially with their children. But it’s important for young adults to understand and appreciate the value of financial protection for their future family in the face of an unforeseen life event.

So how do you bring up the topic of life insurance to your loved ones, especially with your matured children?

Here are 3 easy steps to get started:

1. Discuss goals. What would your child like to do with their lives? Do they want a family? What is their dream job? Would they like to buy a house?

2. Now talk finances. How will your child pay for their future? For their travels? For their family? Does their job salary support these?

3. Finally, talk about yourself. Explain why you have your life insurance policy and why you chose it.

Talking about goals and objectives can help frame the conversation around finances and long-term financial planning. This in turn can lead to a dialogue about the importance of having life insurance, especially when it comes to potential parenthood and having dependent children.

Our $250,000 Term  Life protection costs only $20 a month*...so life insurance really is affordable on an entry-level salary.

But can you really put a price on peace of mind?

Contact an advisor about our your retirement options

*For a healthy 30 year old male.

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5 Life Insurance Tools to Help Determine Your Financial Needs

Posted by catholicfinanciallife

Sep 22, 2015 5:00:00 PM

Life insurance has great value to anyone, whether you’re married, single, retired, a growing family, or a small business owner. The proceeds can help with the many financial needs a family may have including:

    • Paying bills

    • Education for children

    • Retirement plan protection

    • Future financial obligations


Knowing if you need life insurance means you need to think of a worst-case scenario, meaning think of what would happen if you died today and how that could affect your family financially. Life insurance helps to ensure that your loved ones are protected and provided for even after you’re gone.

Another point to consider is how much life insurance you need. First you must determine how much money your family will need after your death for immediate expenses, and how much money your family will need to continue their standard living. To help determine these amounts, here are some useful tools.




These tools are just stepping-stones to give you an idea for how much life insurance you may need. It is important to consult with a professional insurance advisor to help determine other factors that need to be considered before you purchase life insurance. Take the time with the life insurance professional to carefully assess your needs and cover all your options before choosing a plan.

Contact a Catholic Financial Life Advisor today for more information about life insurance and determining your financial needs. Click here to find an advisor in your area.

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Choosing the right type of life insurance:
#2. Whole

Posted by Catholic Financial Life

Sep 21, 2015 4:30:00 PM

For Life Insurance Awareness Month 2015, this three-part blog series will provide basic information on the different types of life insurance and help you determine which kind is best for you. When choosing between the different types of life insurance, always make sure that you are purchasing enough for you, your family, and your future.

 #2. Whole Life Insurance

Whole life is a type of permanent coverage life insurance, which means it's a good long-term plan that will accumulate cash value. 

Parents can protect their children's futures with whole life insurance.

  • It's the perfect plan to purchase for a child. The younger the individual is at the time of the purchase, the cheaper the premium will be, and this price is guaranteed to be locked-in for life.
  • It's ideal for someone who wants lifelong coverage.
  • Cash value begins to accumulate after a few years. You can borrow from this cash value, but be sure to pay back the loan to avoid interest rates which decrease the value of the policy.
  • Catholic Financial Life offers three ways to purchase it:

1. Buy whole life insurance as a standard policy and pay premiums every year for life.

2. The 20 pay policy allows you to complete premium payments after 20 years.

3. Pay in one single premium, and the policy will be completely paid for right away.

Coming up next week: #3. Universal Life Insurance

Did you miss our first post of the series? Check out #1. Term Life Insurance.

Contact an advisor about our your retirement options

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Asking the Right Questions

Posted by catholicfinanciallife

Sep 19, 2015 11:00:00 AM

asking_the_right_questions

When it comes to insurance, make the decision-making process a little less daunting by asking the right questions. During this process, sit down with your personal Catholic Financial Life advisor and consider the following questions:

    • Does your income fluctuate? If yes, how does that impact your short and long-term financial goals?

    • What plans do you currently have in place to make sure you reach these goals without taking on a lot of risk?

    • How much of the money you have set aside is subject to market fluctuations, inflation and taxation?

    • What financial role are you planning to take with your children’s/grandchildren’s education?

    • If you are a business owner, have you determined the value of your business if you wanted to sell it today? Are you aware of the most tax-efficient ways to transfer your business?

    • What income will you need during retirement to enjoy the same standard of living you are accustomed to?

Contact an advisor about our your retirement options

Click here for more information on Catholic Financial Life’s products

Products are not available in all states. Catholic Financial Life is not licensed in all states. Nothing contained herein should be construed as solicitation for insurance, financial products or annuity products in any state in which Catholic Financial Life is not licensed.

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If You Can't Live Without Money,
You Need Life Insurance

Posted by Catholic Financial Life

Aug 3, 2015 4:30:00 PM

ThinkstockPhotos-482545182Do you really need life insurance? Isn't life insurance just an added expense that could be eliminated from the family budget? Could you do better with other investments?

If you answer yes, ask yourself a few more questions. If your income suddenly disappeared, how much money would your family need to get by? Would your savings and other investments be enough to provide your daily living expenses? And for how long? It’s a simple fact that you need money to live, and money is exactly what life insurance provides.

Your Family Will Need Cash
— Quickly

Consider that when someone dies, there is usually a need for both cash and income for the family who’s left behindand they might need to come up with cash quickly. Money will be needed not only for final expenses such as the funeral and burial, but for any debts that need to be paid from the estate. Life insurance can take care of those expenses and much more. Life insurance can be used to:
  • Pay Off the Mortgage – allowing the family to stay in the home, or sell when the time is right rather than having to sell quickly (and perhaps at a reduced cost) for other cash needs.
  • Establish an Education Fund – ensuring the children can pursue a college degree, or provide better career options for a surviving spouse.
  • Set Aside an Emergency Fund – which is extremely important if only one spouse remains.

Your Income Will Need To Be Replaced

A family’s needs won’t stop with cash. There must be a way to make up for the income that has been lost. Food, clothing, utilities, transportation there is a long list of essential ongoing needs that will have to be paid for somehow.

Is Life Insurance the Only Option?

There are few other viable options that provide the financial security offered by life insurance.

  • Savings Accounts – If you’re like most people today, saving money isn’t always easy. How long could your family live on the money you currently have in your checking and savings accounts?
  • Social Security – Survivors may receive minimal income from Social Security, but that’s meant to help cover only the bare necessities. In addition there is a “blackout period” when no benefits will be paid. For more information visit SocialSecurity.gov.
  • Charity – Do you have friends and relatives that will extend financial support to your family? If so, are they in a position to meet more expensive needs like college funding?

Life Insurance Costs Less Than You Think

Studies show that people usually overestimate the cost of life insurance, assuming that it’s out-of-reach for their budget. The reality is that life insurance is very affordable today. At Catholic Financial Life for instance a 30-year-old mom or dad can get $250,000 Term Life Insurance for only about $25 per month.*

Get Life Insurance and Get On With Life

There really is no better way to make sure that your family will be ok if the unexpected happens. Death isn’t something anyone wants to talk about; however, no one can predict the future. You can’t ensure that life will be perfect, but you can try to cover your bases. Life insurance is one thing you can control. And that helps take away some of the anxiety of an uncertain future for those you care about. Get life insurance and get on with what really matters.

Contact an advisor about our your retirement options

*Rates vary by age, health, gender, and type of coverage.
Catholic Financial Life is headquartered in Milwaukee, Wis. Not all products are available in all states.

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Topics: Financial Literacy, Life Insurance, Financial Security

A Mother's Day Gift to Show How Much You Care

Posted by Catholic Financial Life

May 7, 2015 4:34:00 PM

Mother's Day Peace of MindMother’s Day is that special day when we celebrate the important women in our lives, and thank them for their selfless love and unconditional support. Being a mother isn’t glamorous and we often forget that it’s a 24/7 job, 365 days a year. A mother is expected to be there, no matter what happens, because her family is counting on her love beyond circumstances.

But what if something happens and she’s left to pick up the pieces? It’s true, mothers are undercover superheroes; but there’s only so much a mother can do when faced with the heavy financial burden of losing a spouse.

Life Insurance, a Gift of Love

Mother's Day is an important reminder to review your financial protection. Life insurance is a gift of love for your family -- taking care of them if tragedy strikes.

The foundation of a strong financial plan is life insurance. Does your family have enough coverage to take care of mom and the kids, if something happens to dad? 

And what about Mom?  Losing her would be emotionally devastating to be sure; however, the financial loss would only add more distress to a family at an already difficult time. Most moms try to juggle a career while managing a family. So making sure that mom has a enough life insurance to cover her lost income is essential. 

And it's just as important for stay-at-home moms to be insured, a fact that some families overlook. Just think of the economic impact she makes for a family. Being a stay-at-home mom is a full-time job! Among her responsibilities might be serving as the "home manager," childcare provider, chef, tutor, shuttle driver, and much more. Those services would all come at an cost, if she were gone. 

A Gift of Peace of Mind

We love our Moms more than anything in this world, and they deserve the best. And because of the great love of a mother for her family, there is no better gift than the peace of mind provided by life insurance.

Perfume, flowers, jewelry are all great gifts, but this Mother’s Day celebrate her with a special gift, one that truly comes from the heart and gives her peace of mind --not only this year, now but for many years to come. Life insurance: an important and lasting way to show your love. 

Not sure how much life insurance you need? 

Try our Life Insurance Calculator

 

 

 


Catholic Financial Life has been providing financial security through life insurance and annuities to Catholics and their families for almost 150 years. Our team of professional advisors will work with you to make sure you have the appropriate type and amount of coverage for your needs and your budget. Life insurance is more afforable than you think. Get started today.
Contact an advisor about our your retirement options

 

 

 

 

 

 

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Topics: Family, Mother's Day, Gift, Life Insurance, Financial Security