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Life Insurance Policies to Meet Your Needs & Wants

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Like anyone else, you want a life insurance policy that meets your needs and budget. But how do you find the right policy when there are so many to choose from and many of them seem so similar? The key is talking to your CPA and financial planning consultant, establishing your goals, comparing policies, and evaluating results.

Know What You Want

Your first step should be to assess your life insurance needs. Maybe you are in a in similar position as Joe. Joe is in his mid-40s, has a wife and child, with no life insurance coverage. He has an entrepreneurial spirit and has worked various jobs in between his next big venture. For Joe, he and wife wanted confidence in knowing if something were to happen to Joe, his wife and child would be financially OK. Joedidn’t know if he needed $250,000 of coverage or $750,000? He had questions such as:

  • Would I be better off with term life or a cash value policy? If buying term life, how many years of coverage is needed?
  • Are there any special features I want in a policy? For example, premium flexibility
  • How much can I afford to pay in premiums?

These are important initial questions to answer before you even start exploring policies.  Talk to your CPA and financial planning consultant about your goals and they can help pave the path for what life insurance options may be a fit.

Determine the Value of Your Policy

The premium is an important factor when comparing policies, but often the premium doesn’t tell the whole story. What you really want is the best overall value for your money. To determine a policy’s true value, you have to dig a little deeper. Carefully read the fine print of each policy you’re considering (your financial team will help you with this!), and ask lots of questions. A closer look at policies may reveal key differences that would have gone unnoticed. Here are some things Joe was looking for and asked his financial team about:

  • Do policy premiums or benefits vary from year to year? If so, what part of the premiums or benefits is guaranteed, and what part is not?
  • If a cash value policy, what are the company’s projections of future cash value? How do those projections stack up against other cash value policies? Are the assumptions in those projections realistic?
  • Can you access the cash value through a withdrawal or loan? What restrictions apply? What is the loan interest rate?
  • What charges and fees are associated with the policy? For example, what surrender charge will you pay if you give up a policy and take out the cash value?
  • Can you customize the policy to your needs with options or riders, and at what additional cost? For example, how much extra will you pay for a “waiver of premium in the event of disability or accidental death benefit” rider?

Get Professional Help

Developing a strategy for life insurance takes a combination of patience, persistence, and industry knowledge – that’s why your CPA, financial planning consultant, and HKFS insurance team is here to help. Our qualified insurance professionals can assess your insurance needs, make sense of complex sales illustrations, and conduct a cost-benefit analysis of similar policies.

In Joe’s situation, his CPA and HKFS team identified a life insurance solution that allowed Joe and his family peace of mind should he pass away, the ability to increase or decrease his coverage, the opportunity to stop paying a premium for a short period of time if he was out of work, and the option to convert term insurance to permanent insurance without evidence of insurability – a great outcome for Joe and his family.



Investment advisory services offered through HK Financial Services (HKFS), a SEC-Registered Investment Adviser. Commission-based securities products are sold by ProEquities registered representatives and offered through ProEquities, Inc., a Registered Broker-Dealer and member FINRA and SIPC. HKFS and ProEquities are independent of each other. 1583762028765