Edward Jones Diversity Series

While you may be certain that your premium has been paid and that your life insurance policy is stored in a safe place, does it provide enough coverage for all of your family's needs? If you have doubts, it might be time to give your policy a closer look.

When reviewing it, you should first consider that there are different types of life insurance to assist your needs. The generally inexpensive term life insurance is a contract between an investor and an insurance company to protect survivors against hardship due to the death of the insured. The insurance proceeds are paid to the beneficiary, or beneficiaries, free of ordinary income tax, at the time of death. There are no investment attributes to term life insurance and no cash build up, which makes the initial premium less expensive than that on permanent insurance. Term life insurance is often referred to as temporary life insurance.

In contrast to term life insurance, permanent life insurance provides insurance protection over one's entire lifetime. Permanent life insurance is available in two basic forms, universal life and whole life. Although both forms offer protection over the lifetime of the insured, their structures are different.

Generally speaking, universal life will permit a lower cost per thousand of insurance, but its projections are more volatile. Fixed universal life passes on more pricing risk than whole life, meaning that the owner assumes some of the risk of the cost of insurance and also assumes the risk of fluctuating interest rates.

In contrast, whole life insurance offers a guaranteed cost of insurance and minimum guaranteed cash value. Unlike universal life, whole life is designed to be inflexible but offers guarantees in return. Guarantees are backed by the claims-paying ability of the issuing insurance company only.

Each form has advantages over the other and the selection is generally based on the long-term objectives of the insured.

Of these types of insurance, African Americans and Hispanics often rely on term insurance.

Insure Your Family's Peace of Mind

Life insurance is one of the most important investments you can make to help ensure your family's peace of mind, but do you have too much, just enough or too little life insurance? Answering this may depend on your particular needs for life insurance which could include: replacing the main provider or bread winner's income, mortgage and debt cancellation, education funding, covering final expenses and providing an additional financial cushion for surviving family members.

What's Your Needs Analysis?

Through its more than 8,800 branch office locations throughout the country, Edward Jones can help you determine the appropriate amount of protection you should have. Highly trained investment representatives are available to provide personalized services such as a free Life Insurance Needs Analysis.

"At no cost to you, we can evaluate your current needs and take into account existing coverage and policies to help you determine the best amount of coverage you should have," said Angela Banks, an investment representative based in University City, Missouri, a part of the St. Louis Metropolitan area.

The Needs Analysis also will consider life changing events such as a new career, a new mortgage, marriage, children or business ventures with the ultimate goal of determining an ideal insurance program that will cover both short and long term needs and still respect your budget.

"When you come in, there are a number of insurance options we can go over in detail. In addition to life insurance, Edward Jones offers disability, long-term care, and Medicare supplemental insurance and other products to help protect you and your family," said Banks.