Why I purchased Life insurance at 24*

Everybody’s situation is different.

Mine began with a whole bunch of first: my first job; my first apartment; my first Life insurance policy. I am now a 24-year-old single individual, with no dependents, with some disposable income – and a life insurance policy owner.

How did this happen?

The conversation began at work. I asked Sean, a colleague, about his retirement future and how he intends to plan for it. He rattled off the usual, in no certain order: 401(k) plan, Roth IRA account, personally-held stocks and bonds, a money market account. And, life insurance.

I was surprised by the last one. Life insurance was a part of his financial portfolio? My understanding was that we received life insurance through our employer; so, basically, we were covered. And, I didn’t view life insurance as a part of any financial strategy.

Sean went on to say that life insurance has always been a part of his family’s financial blueprint, and was purchased primarily for the death benefit. The Whole Life insurance policy that his father purchased early in his own life actually helped pay for bill’s college education.  And, now, Sean said that the Whole Life insurance policy he currently owns is now helping pay off his student loan.

Sean’s Living Benefits

I have always equated life insurance with death. Once a death claim is paid to a beneficiary, that person can use the proceeds as needed. Well, Sean quickly dispelled that notion for me. Here is what he said are some of the “living benefits” of Whole Life Insurance:

"These are benefits available to you while you are still alive. Cash value accumulated in a permanent life insurance policy can help you pay for life’s anticipated, and perhaps unanticipated, events, such as buying your first home, education expenses or a wedding.^**  Once the need for death benefit protection has decreased, you can access the cash value in a the Whole Life policy via Policy loans."

Sean took advantage of the living benefits of his whole life insurance policy to help pay off his student loan. He purchased his policy at 24, the same age I am currently. Now 36, he’s married and plans to again borrow some of his policy’s cash value to offset costs for their first home. He is going to continue to fund his Whole Life insurance policy so that when he enters his retirement years, he can use some of the cash value to supplement his retirement income.

As we got deeper into the conversation, the idea of buying a Whole Life insurance policy made more and more sense to me. Still, there were cost considerations I had to take into account. I, too, am paying off a student loan, and close to erasing my credit card debt. So, there was some lingering doubt.

The benefits of Beginning Now

Sean understood and appreciated my point about cost — he had similar concerns before he bought his policy. What really sealed the deal for me, however, is when Sean recounted what his father said when he questioned becoming a policyholder in his twenties.

This is what Sean relayed to me: "Basically, the younger you are, the lower the price will be to insure you. Also, you're in good health now, so your premiums will be lower than if you decided to get life insurance at my age, when your health status may change and put you at risk for being unable to obtain life insurance at an affordable cost or even at all. And, if you lock in your premium now, it will never increase — guaranteed."

"So, with a little belt-tightening now, by becoming a life insurance policyholder, you will have an important and secure financial-building block for your future."

FOR IMMEDIATE RELEASE            CONTACT: RYAN KRUPKA

     888.457.8752

Three WAYS TO HELP YOU SAVE MONEY ON YOUR LIFE INSURANCE

Local Insurance Expert Offers Cost-Cutting Tips to Encourage Consumers

to Maintain Their Coverage

CAMARILLO 05/10/2010 – Uneasiness about the state of the economy has prompted Americans to look for ways to spend less wherever they can. If dropping your life insurance coverage is one of the options you’ve been considering, here’s some welcome news. You may be able to hold onto your coverage and save money in the process.

“Life insurance is a financial safety net for your loved ones, so the absolute worst time to drop coverage is when you’re feeling financially vulnerable,” says Ryan Krupka, Personal Insurance Advisor with Krupka Family Insurance Agency, Inc. “A far better solution is to find a way to save money on your existing coverage, and I’ve got some tips to help people do just that.”

September is Life Insurance Awareness Month, the perfect time to review your life insurance needs with an insurance professional. If you already have coverage, you may be able to cut costs based on the following, says Krupka:

?  You’re healthier. If you have quit smoking, lost a substantial amount of weight or made significant improvements to your health, let your insurance company know. You may be able to qualify for a lower rate on your coverage.

?  Rates are near historic lows. Life insurance rates remain near historic lows. In fact, the cost of basic term life insurance has fallen by nearly 50 percent over the past decade. So if your family’s budget is tight and your health status hasn’t changed much since the time you last purchased coverage, you may want to apply for a new policy. If you do, make sure not to drop your current coverage until the new policy is in force.

?  Circumstances have changed. It is smart to review your policy every year to make sure it’s adequate and up to date. If the kids are out of the house, your mortgage has been paid off, you’ve gotten divorced or family members no longer need your financial support, your need for life insurance coverage may have decreased. A smaller face amount policy will likely save you money.

“If people depend on you financially, life insurance is an absolute must and needs to remain a priority,” says Krupka. “But no one should pay more than they have to, especially in these tough economic times.”

Seems to me that We've experienced more 7.0 and greater earthquakes in 
the last 4 months than we have in the last 20 years!

If you don't have earthquake insurance today
  ....perhaps now would be a good time to seriously consider adding it?

If your still unsured, simply ask yourself these questions:

1). Can I afford 2 mortgages even if I could qualify for another mtg 
in this economy?

2) If you don't like the idea of doubling your mtg...not to worry your 
liability is limited ....fema's maximum loan is only 240k but you must 
qualify for it. Unfortunately this amount will only rebuild 1200 ft of 
house so maybe the house was to big anyway? Less housework plus it 
keeps the family close

3).Have u considered that your employment might be effected by this 
event as well? Some companies closed up in the 94' 6.4 quake not sure 
if the same trend could continue in a 7.8 quake

4). Did u know that if you choose not to rebuild you can still get the 
$? you can scrape the lot demo the home, pay off the mtg and move to 
Texas if you like and dont forget the $ you get from EQ coverage is Income Tax Free!


I often hear people say that the coverage cost is prohibitive but 
usually it only costs $100-150 / month. You can't afford not to have it.

Finally we offer this coverage thru the CEA ( Calif. Earthqukae Authority) which is the worlds largsest 
earthquake carrier. Remember when you were a kid and you used to say it's 
better to ask for forgiveness than permission?

Well there will be millions in line asking their gov (fema) for a loan , grant or
some form of government aid. Problem is history has shown the government doesn't 
respond to well ( ie New Orleans).

So unless you really like living in a 
trailer out of state.... Maybe, just maybe, it's time to switch sides on 
this debate and  become one of the 13% in the state that is prepared and 
does carry this coverage . I can think of alot of worse ways to spend
$100/ month and aren't your real estate holdings  probably the biggest 
asset you own?

Do the math ! Ten yrs of premium is between $14-18,000 . come eq time 
you collect $200-300.000 income tax free and your not bankrupt. Think about it.....what would be a better deal? the
the $18,000 in saved premium plus 2% interest or the $315,000 of income tax free benefits??

This has been a public service message from krupka family insurance 
Agency Inc. We welcome your thoughts & comments