This document contains responses to questions submitted to AC Marmo & Sons, an insurance agency located in Fairfield, New Jersey. The questions cover topics such as how to calculate the appropriate amount of life insurance needed, how long term life insurance policies are needed for, reasons for converting term policies to whole life policies, and when different life stages warrant purchasing life insurance. The responses provide advice on each topic and emphasize speaking with a trusted insurance agent to determine individual insurance needs.

1. December 2018-January 2019

2.  The following slides are the first in a series
based questions that have been submitted to
A.C. Marmo & Sons in Fairfield, NJ.
 If you would like to submit a question:
Call us: (973) 340-9100 or send us an Email from our
website: www.acmarmo.com

3.  How do I figure how much life insurance
need?
When purchasing life insurance, for the protection and security of
your family, there are many variables that need to be taken into
consideration. In calculating the amount that is needed, you have to
consider the age of your wife and children, how much they will need
to live on, if you were taken out of the picture. The amount of your
outstanding mortgage, the cost of your children’s education, your
credit card debt and money for emergencies, such as medical
expenses or house repairs. To get a good idea of how much life
insurance you need, add up all your monthly bills and fixed
expenses over a three (3) month period, multiply it by four (4) then
add for your children’s education and what your wife will need to live
on for the rest of her life.

4.  With regard to term life insurance, how long
do I need protection?
To determine how long you need a term life insurance policy, you need it to
cover up until your youngest child is finished with college and is at least 21
years of age; and, to cover your outstanding mortgage up to the amount of
years left on it. Most term life insurance policies have a maximum term of
30 years.

5.  Should I get a policy for my kids? If so, why?
This is a question that comes up all the time and is not as straightforward as
it sounds. Life insurance is usually purchased as a salary replacement, or a
tool to pay for funeral expenses. In most cases of a child, there is no salary to
replace; and, with the absence of a child, your living expenses with actually
drop. There are mainly two types of life insurance products, those being Term
and Whole Life. Term is mainly used to pay off financial obligations, such as a
mortgage, children’s educational needs and a sufficient amount of money for
the family to live on, if the breadwinner is taken out of the picture. Whole Life
Policies accrue a cash value during the life of the insured. For example, my
father purchased a $5,000 Whole Life Policy at my age of three and
continued purchasing a new one each of the next four years. Today at my
age 50, the Cash Value in my policies exceeds $75,000 and I haven’t paid a
premium in the past 25 years.

6.  What does “guaranteed” mean when you are
talking about a premium?
When a life insurance policy is written on a whole life or term
insurance basis where the premium is guaranteed, it simply
means that it will never change during the policy period…up to the
maturity date of the policy.

7.  Why do people convert their term policies to
whole life?
When you are considering converting a term life to a whole life
policy, there are many different factors to take into account,
including your current budget, your need for flexibility, and the
financial obligations your family will have in the future. There are
several good reasons why it might be a good idea to convert a
term policy to whole life; your health has deteriorated and you
might not be eligible for affordable life when your term life policy
expires. You need life insurance longer than you initially expected
and you want a policy to cover you for the rest of your life. You
may have purchased your term policy when you were younger
and it was all you could afford at the time.

8.  : Do I Need Life Insurance If I Have No
Dependents?
The answer is “yes”. There are several reasons why you need life
insurance. The first is when you buy a new home. Life insurance can cover
mortgage debt and help pay for home expenses in the event of your
untimely death. A good tip in making the decision is to make sure you have
enough coverage to at least pay off your mortgage or cover the mortgage
payments and normal expenses until the house is sold.
Another situation where it’s important to have life insurance is when you have
received a significant raise or your income has been increasing steadily. Two-
thirds of the people who own life insurance bought it to replace lost income if
they were to pass away. So, make sure your coverage is still enough to
achieve that objective. Also, if your lifestyle changes as income increases, you
may notice you’re spending more per month than a year or two ago. In that
case, you should make sure that the life insurance you bought does not leave
a gap between its coverage and your loved ones’ needs.
Last, people get life insurance to transfer wealth or leave an inheritance,
including cases where they are not leaving it to dependents.

9.  At What Life Stage Should You Buy Life
Insurance?
The answer really depends on several factors, not the least of
which is your income and how it changes as you grow older. For
example, when you may become the “breadwinner” for the family,
life insurance can provide “income replacement” so that your
family can continue to pay everyday expenses. In this situation,
term life insurance can cover your working years.
If you are a stay-at-home parent, life insurance could cover the
cost of paying for services a parent does for “free”, such as child
care. Term life, then, can cover the years your kids are young.
Other occasions can be when you become an investor, or a
business owner or needing to pay off a student loan. There are
lots more. Talk to us to find out exactly what your life situation is
and we can tell you why you should buy life insurance.

10.  What Do They Mean When They Say “Quality
Insurance”?
As an independent insurance agency that is highly customer-
focused, we can offer the highest quality coverages and the best
prices. We have relationships with some 45 insurance companies
to choose from to find the best solutions for you at the highest
quality levels. We can do this whether you have the ideal history or
a not so perfect history; we are able to find the right coverage with
the best company at the best price for you.
When you deal with us, you are not dealing with a customer
service representative as you would with many other agencies. You
are dealing with a licensed insurance agent who can offer you the
highest quality policy with not only the right coverage, but also the
personal touch you should expect from an insurance agency.

11.  How Much Life Insurance Should The Average
Person Buy?
The best way to answer this question is to know when you should
buy life insurance as you go through different stages of life. One
good tip is to start young. Just having a family, a mortgage and
large financial obligations doesn’t mean you have to wait to get life
insurance. In fact, you can lock in your rates while you are young
and healthy and later on, add more coverage. It really depends on
your situation as to how much you should buy. If, for example, you
are a small-business owner, you should think about having life
insurance to take care of your family in the event something
happens to you.
Each situation is unique and that is exactly why you should talk to
an agent you can trust to tell you how much life insurance you
should buy.

12.  How does my loss ratio affect business
insurance premiums?
The loss ratio for business insurance reflects the premium paid to the
insurance company and the amount the insurance company paid out in
claims. A good loss ratio makes your policy (or policies) more attractive to
your current or new insurance company; therefore, they are apt to apply
discounts to your premiums.

13.  Centrally located in Fairfield, New Jersey, AC Marmo &
Sons has been servicing the insurance needs of individuals,
families and businesses, since 1929. Standing behind our
mission statement: “Work with someone who is accessible
and has the knowledge and experience to understand your
needs” has established the Agency as a main source for NJ
Insurance. Customer satisfaction is our priority each and
every day for over 5,000 clients in and beyond the tri-state
area. For more information, visit http://www.acmarmo.com.