4 Savvy Life Insurance Insights

1. It costs less than most people think. When asked how much a $250,000 term policy would be for a healthy 30-year-old, people surveyed estimated about $500—more than three times the actual cost.*

2. You can have more than one life insurance policy. Someone with coverage through work, or with a term policy, might decide to supplement it with additional coverage from another policy that can provide coverage for a lifetime.

3. Money doesn’t have to be left to relatives. A life insurance payout can be used, for example, to support an alma mater, hospital, humane society or religious organization.

4. There are drawbacks to waiting to get life insurance. A young and healthy person is likely to get the best rates, and if they wait until they get older, they may develop conditions that make it harder—or even impossible—to get coverage.

FOR MORE: Visit AAA.com/Life.

Disclaimer: AAA Life and its agents do not provide legal, tax or financial advice. Please consult your professional advisor prior to the purchase of any policy or contract. Life insurance underwritten and annuities offered by our affiliate, AAA Life Insurance Company, Livonia, MI. AAA Life is licensed in all states except NY. CA Cert of Authority #07861. Product availability and features may vary by state. ALMI-24500-917-XX

*Source: LIMRA 2017 Insurance Barometer Study. Best annual cost of a 20-year, $250,000 level-term policy through AAA Life for a healthy, non-smoking 30-year-old consumer.

A version of this story appears in the November/December 2017 issue of AAA Living magazine.

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Common Life Insurance Mistakes
These assumptions can leave you without proper coverage.

Assumption: "I have plenty of coverage through work."

Reality: It's tempting to rely solely on coverage through work, but the amount available is often insufficient, and you'll likely lose that coverage if you lose your job.

Assumption: "My stay-at-home spouse doesn't need life insurance."

Reality: Insuring a spouse who doesn't earn income can help offset the costs of their responsibilities, such as child care, in the event you’d have to hire someone to do them.

Assumption: "My family is secure because my mortgage is paid off."

Reality: Paying off your mortgage will ease your financial burden, but other expenses, such as property taxes, car payments, utility bills and food, need to be considered as well.

Assumption: "I only need to make decisions about beneficiaries once."

Reality: A change in marital status is one reason to designate new beneficiaries, and you may decide to modify payout options, perhaps after a dependent child has grown up.

Are You Covered? Schedule a needs analysis with your AAA Life and Annuity Agent. AAA.com/Life.

Disclaimer: AAA Life and its agents do not provide legal, tax or financial advice. Please consult your professional advisor prior to the purchase of any policy or contract. Life insurance underwritten by our affiliate, AAA Life Insurance Company, Livonia, MI. AAA Life is licensed in all states except NY. CA Cert of Authority #07861. ALMI-24285-717-XX

A version of this story appears in the September/October 2017 issue of AAA Living magazine.

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Are Your Affairs in Order?
Help your loved ones by organizing the things in your life that matter.

Losing someone you care about is difficult, and it can be even worse when that person’s financial and legal information is in disarray. That’s why it’s surprising that only 44 percent of Americans have a will.* In addition to creating a will, you can make things easier for those you love by providing them with the following:

Special Instructions

• Directions for funeral arrangements
• Your wishes for the ongoing care of your pets
• Your plans for organ or body donation

Personal Information

• Names and phone numbers of your friends, relatives, religious organizations and doctors
• Instructions for handling your digital life
• Your Social Security number, if you receive benefits or if your survivors may qualify for benefits

Financial Information

• Life insurance details—company and agent name, policy number, amount of coverage, and names of primary and contingent beneficiaries
• A list of assets, including checking, savings and retirement accounts
• Payment details for things like a home mortgage, car loan and credit card accounts
• Location of important documents and safety deposit box details

A good life insurance specialist can assist you in choosing the products that will help protect your loved ones and will be there to help them through the claim process.

To talk with an agent, stop by any AAA office or visit AAA.com/Life.

Disclaimer: AAA Life and its agents do not provide legal, tax or financial advice. Please consult your professional advisor prior to the purchase of any policy or contract. Life insurance underwritten and annuities offered by our affiliate, AAA Life Insurance Company, Livonia, MI. AAA Life is licensed in all states except NY. CA Cert of Authority #07861. Product availability and features may vary by state. ALAN-24022-417-XX

*Source: Gallup Poll, May 4–8, 2016

A version of this story appears in the July/August 2017 issue of AAA Living magazine.

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The Right Fit: How to Choose Life Insurance
Do you know how to choose life insurance that’s right for you?

How much insurance do you need?
The first step to protecting the financial future of your family is to have a clear understanding of your needs. You probably have a mix of long-term and more immediate concerns. Immediate expenses could include replacing a portion of your lost income to help cover daily living costs for things like mortgage or rent payments, car bills and food. Having life insurance that covers these basic obligations is important, but it’s likely that your family has other, long-term financial concerns, such as paying for a child’s college tuition and covering final expenses, that should be factored into your insurance needs.

How much insurance do you have?
If you’ve got life insurance through work, you may assume that you’re sufficiently covered. But remember, you’re probably limited in the amount of coverage you can get: Many employer-provided policies offer only one or two times your annual salary. Also, life insurance through your work may only last while you are with that employer (leaving you potentially unprotected at a time when it could be costly to do so).

How can a life insurance specialist help?
Trying to make financial decisions without a thorough understanding of your options can be intimidating. It’s a good idea to work with a professional life insurance specialist, someone who can help you make decisions that are best for you. Maybe you’ve recently gotten married, bought a house, had children or started your own business. A good agent can review your changing needs and help you determine the right coverage.

To talk with an agent, stop by any AAA office or visit AAA.com/Life.

Disclaimer: AAA Life and its agents do not provide legal, tax or financial advice. Please consult your professional advisor prior to the purchase of any policy or contract. Life insurance underwritten and annuities offered by our affiliate, AAA Life Insurance Company, Livonia, MI. AAA Life is licensed in all states except NY. CA Cert of Authority #07861. Product availability and features may vary by state. ALAN-23903-417-XX

A version of this story appears in the May/June 2017 issue of AAA Living magazine.

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Retirement Readiness
An annuity might be the missing piece of your happily ever after.

Are you planning for retirement? While there are a variety of long-term financial products available, the one that’s often overlooked—because people don’t know enough about it—is an annuity. But when people gain knowledge of annuities, they’re more likely to have positive opinions about them and are six times more likely to own them, according to a recent study by LIMRA Secure Retirement Institute. So what are some of the features of annuities?

Income
With people living longer than ever, it’s a good idea to have a source of income that doesn’t run out. A guaranteed-income annuity can pay an income from your savings for as long as you live, or for both you and your spouse’s lives.

Flexibility
As an owner of a guaranteed-income annuity, you can customize how often you are paid, set your payout so it increases to offset inflation and much more.

Diversification
The basic design of a retirement portfolio is a pyramid, with a solid base of lower-risk financial products supporting a smaller amount of higher-risk products. Because fixed annuities offer steady, guaranteed interest rates, they can help provide stability to a retirement portfolio at the base of the pyramid.

Tax Deferral
Tax on the earnings of an annuity is generally deferred until withdrawal, allowing your money to accumulate faster because it grows in three ways: Your premiums earn interest, your interest earns interest, and the money you would have paid in taxes is deferred to the future.

To talk with an agent, stop by any AAA office or visit AAA.com/Life.

Disclaimer: AAA Life and its agents do not provide legal, tax or financial advice. Please consult your professional advisor prior to the purchase of any policy or contract. Life insurance underwritten and annuities offered by our affiliate, AAA Life Insurance Company, Livonia, MI. AAA Life is licensed in all states except NY. CA Cert of Authority #07861. Product availability and features may vary by state. ALAN-23801-D16-XX

A version of this story appears in the March/April 2017 issue of AAA Living magazine.

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Why Get Life Insurance Now
Should you rethink your reasons for putting off buying life insurance?

When life gets busy, we sometimes put off things that can be accomplished later, like getting our car serviced or doing yard work. You might think buying life insurance fits that category—after all, most of us don’t plan on dying anytime soon. But, there are actually a number of advantages to getting coverage now. Here are some common excuses for procrastinating, and the reasons to rethink them:

It costs too much.
Most people overestimate the cost of life insurance, on average guessing that it costs more than twice as much as it really does.*

I might find a better deal tomorrow.
As people age, their chances increase of developing a health problem that will affect their insurability. Life insurance rates tend to be lower the better your health is.

I don’t need it now.
If you’re young, certain kinds of policies bought today can help to fund your retirement years from now. If you’re already retired, a life insurance policy can help you leave a legacy.

I don’t want to think about death.
Rather than think about your own passing, think about those you care about. A death benefit can help protect their financial future and stability.

Choosing the right coverage is overwhelming.
A life insurance agent can help you understand your needs and options—saving you time by guiding you through the process of picking coverage that’s right for you.

Shopping for life insurance? See how AAA can help. Learn More.

Disclaimer: AAA Life and its agents do not provide legal, tax or financial advice. Please consult your professional advisor prior to the purchase of any policy or contract. Life insurance underwritten and annuities offered by our affiliate, AAA Life Insurance Company, Livonia, MI. AAA Life is licensed in all states except NY. CA Cert of Authority #07861. Product availability and features may vary by state. ALAN-23721-D16-XX

*Source: LIMRA 2016 Insurance Barometer study

A version of this story appears in the January/February 2017 issue of AAA Living magazine.

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