In the aftermath of Hurricane Sandy in2012, thousands of people in theNortheast were without power forweeks, if not months. If you ask thosewho had the foresight to purchase agenerator before the storm hit, many ofthem will probably tell you it was oneof the best investments they ever made.

You have probably never thoughtabout life insurance as a generator,but the aftermath of Hurricane Sandymakes the parallels clear, says DanGardella LUTCF, CLTC, vice presidentof Insurance Operations for DavidLerner Associates. “The things we alltake for granted — electricity, heat,running water — were gone for manypeople. But those with a generatorcould at least turn on their lights andtake a hot shower. They were a littlemore at ease.”

Eventually, the aftermath of the stormpassed, and things returned to normalfor most people. “But when a lovedone dies, they’re not coming back,” says Gardella. “How dotheir surviving family members and loved ones power up theirresources?”

Gardella identifies five key areas that can be “powered up” byplugging into a “life insurance generator:”

1. Family protection — When a primary breadwinner in thefamily passes on, so does the income that he or she earned.Therefore, Gardella says that income replacement is one of themany reasons people buy life insurance.

“The death benefit from a life insurance policy can providefunds that enable surviving family members to maintain theirlifestyle — to stay in their home, for example, or for children tostay in college or a private school.”

2. Supplemental retirement income — A whole life (or per-manent) insurance policy with cash value can provide cash tosupplement a pension or other retirement savings plan duringretirement. “Who knows what the status of Social Security isgoing to be when people are ready to retire?” says Gardella.

3. Mortgage protection —A life insurance policy can provide acash lump sum that can be used to pay off a home mortgage ifa family’s primary breadwinner dies unexpectedly.

4. College funding — In the same way that the cash value froma whole life policy can supplement retirement income, it canalso provide money to help pay for your children’s college edu-cations. “You can build up cash value and dividends in a policyto help put your kids though school,” says Gardella.

5. Long-term care — According to Gardella, life insurance poli-cies can be bought today that include a long-term care rider.“This gives you a living benefit of monthly cash to help pay forlong-term care expenses if you need them later in life, as well asa death benefit for your surviving family members and heirs.”

In speaking with families about life insurance, Gardella says heoften hears them say that they can’t afford the premiums, “butit’s important to look at all the benefits you may receive bypaying life insurance premiums.”

Five Ways to Power Up a Life Insurance Generator

LIFE INSURANCE G E N E R A T O R

COLLEGE FUNDING

SUPPLEMENTALRETIREMENT INCOME

LIFE INSURANCE ANDLONG-TERM CARE BENEFITS

FAMILY PROTECTION

MORTGAGE PROTECTION

Plug into the power of life insurance to protect yourself and your family.

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David Lerner Associates, Inc. has direct selling agreements with several major insurance companies.Those companies determine insurability, and not everyone will qualify. Check with your Investment Counselor for underwriting qualifications.

LIFE INSURANCE O RTG E N E R A O R

All insurance benefits are paid subject to the claims-paying ability of the issuing company. Material contained in this article is providedfor information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities. Member FINRA & SIPC.

www.davidlerner.com

04/2014