Real security for you and your family
Marriage. A new home. Kids. College. Retirement. Life is filled with changes. With that comes the need to prepare you and your loved ones for the uncertainties that lie ahead. Securing the right amount of life insurance for your family is an important way to be prepared. AAA Life Insurance Company offers a variety of life insurance products to help meet your financial needs.

• Options: a portfolio of quality life insurance options designed to fit every need and every budget, making it easy for you to help ensure your family’s financial security
• Dedication: knowledgeable, licensed life insurance agents provide personalized service—in a AAA office or in your own home

Deciding the amount of life insurance you need
With your financial information and your goals, you can use a formula to determine how much life insurance you may need.

Most financial planners recommend that, generally, people need life insurance in the amount of 6 to 10 times their annual salary. Special circumstances may dictate that more or less coverage may help meet one’s needs. There are a number of factors to consider when estimating how much life insurance you may need. They include:

• Final Expenses: Final expenses usually include funeral expenses, unpaid debts, unpaid hospital bills, probate costs, and estate and inheritance taxes
• Emergency Fund: Due to premature death, your family may need to make adjustments in their lifestyle. They may need to move, or the surviving spouse may need additional training to qualify for a higher paying job—the emergency fund may help cover the cost of making these necessary adjustments
• Educational Funds: The cost of your childrens' education, including elementary school, high school, and college. Life insurance may help cover this expense
• Mortgage: Providing the money necessary to pay off the mortgage or provide an income stream to pay the monthly mortgage or rent payments may be a consideration
• Payment of Debts: Funds needed to payoff any debts including auto loans, credit cards, and other loans should be considered
• Income Replacement: There may be a need for a continued income stream to help with the family's living expenses, such as mortgage payments, monthly bills and day care
• Retirement Fund: The amount needed to help provide your family with anticipated retirement income in the event of your death is suggested to be 5 times your current annual income
• Non-Employed Spouses: Non-employed spouses make a valuable contribution to the family's needs; fulfilling these needs may require additional income

Everyone's life insurance needs are different. In general, an individual's needs are greatest when they start their careers and their family. When they reach retirement, their need for life insurance may be reduced. It is important to review your life insurance needs at least every two years.

Life insurance plays a big part in family financial planning
Since personal conditions and needs vary, AAA offers a variety of products and services that will help make your family’s future a secure and bright one.

Term Life Insurance: Provides coverage for a specified number of years.

• Term life insurance may be beneficial when your life insurance needs are 30 years or less and when the cost of permanent insurance is more than your budget might allow
• For newlyweds or young families, term life insurance is a way to help ensure that the people you care for most may have a better chance to maintain their standard of living
• Even when debt loads are highest, term life insurance may help your family stay in your home and your kids attend college
• Term life insurance is also a practical choice if you need to supplement your employer-sponsored life insurance or don't have an employer-sponsored policy

Whole Life Insurance: Permanent life insurance designed to help provide coverage for a lifetime.

• Whole life insurance policies are generally designed to have a level premium
• This type of policy builds a cash value that generally accumulates on a tax-deferred basis, under current tax law²

Universal Life Insurance: Another type of permanent life insurance.

• Policies differ from whole life insurance policies in that they offer some flexibility to change the premium payments and death benefit amount
• Even though premium payments are flexible, a minimum premium is required to keep the life insurance coverage in force
• A universal life insurance policy builds a cash value that generally accumulates on a tax-deferred basis, under current tax law²