SMEED CPA, Inc | 201 Sand Creek Road, Suite F | Brentwood, CA 94513 | Phone: 925-634-2344

       

 

 

Michael Uadiale, CPA

SMEED CPA, Inc.

 

Call our Testimonial Hotline & give us your feedback at:

 

800-609-9006 extension 3638

 


 

Other Articles

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This Month's Feature Articles

- Renting Out a Vacation Home
- Should You Invest in Life Insurance?
- Employee Relocation in a Down Market
- A SIMPLE Retirement Plan for the Self-Employed

Tax Tips

- Special Tax Benefits for Armed Forces Personnel
- Deducting Charitable Contributions: Eight Essentials
- What Income Is Nontaxable?
- Tips for Recently Married or Divorced Taxpayers

Financial Planning Tips

- Create a Living Will
- Update Your Will
- Review Budget vs. Actuals

 


 

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Should You Invest in Life Insurance?

 

The purpose of life insurance is to provide a source of income, in case of death, for your children, dependents, or other beneficiaries.

Life insurance can also serve certain estate planning purposes, which we won't go into here.

Buying life insurance is contingent upon whether anyone is depending on your income after your death.

If you have a spouse, child, parent, or some other individual who depends on your income, then you probably need life insurance.

Because life insurance protects your family in the event of a death, it is important to determine the correct amount. Most people do not have the right amount of insurance.

There are two basic types of life insurance: term and permanent. Term insurance is insurance that covers a specified period. If you die within this time frame, your beneficiary receives the insurance benefit. Term policy premiums usually increase with age.

Permanent insurance such as universal life, variable life, and whole life, contains a cash value account or an investment element to the insurance.

Rules of Thumb

The younger your children, the more insurance you need. If both spouses earn income, then both spouses should be insured, with insurance amounts proportionate to salary amounts.
 

Tip:  If the family cannot afford to insure both wage earners, the primary wage earner should be insured first, and the secondary wage earner should be insured later on. A less expensive term policy might be used to fill an insurance gap.


If one spouse does not work outside the home, insurance should be purchased to cover the absence of the services being provided by that spouse (child care, housekeeping, bookkeeping, etc.). However, if funds are limited, insurance on the non-wage earner should be secondary to insurance for the wage earner.

If there are no dependents and your spouse could live comfortably without your income, then you will still need life insurance, but you will need less than someone who has dependents.
 

Tip:  At a minimum, you will want to provide for burial expenses and paying off your debts.  Make a list of your outstanding loan and credit card balances.  And mortgage balances if you do not have private mortgage insurance on the loan.


If your spouse would undergo financial hardship without your income, or if you do not have adequate savings, you may need to purchase more insurance. The amount of insurance you need depends on your salary level and that of your spouse, the amount of savings you have, and the amount of debt you both have.

If you need help figuring out the correct amount of life insurance you need, then give us a call at 925-634-2344. We're happy to help.

 



Would You Give Me Your
Feedback & Testimonial on Our Hotline?

 

Hello its Michael Uadiale, CPA of SMEED CPA Inc.  Weve just installed a toll-free number that I would like for you to call and tell me how you think we are doing as your CPA firm.

 

Just dial 800-609-9006 extension 3638 and follow the instructions.  If weve done a good job please let me know.  And if we can improve on anything, please mention that too.

 


 

Help Us Be Found on Google!

 

Also as we expand our business, we find more and more people are using the Internet and Google to look for us by searching Brentwood accountant or Brentwood CPA.

 

When they do this we want to be FOUND on GOOGLE.  One way you can help us is to give us an ONLINE REVIEW on our Google Maps/Places listing --->

 

Just click here to go to our Google Listing for SMEED CPA.  Scroll down to the Review area.

 

It may say:  Been here? Rate and review

 

You will click on the Rate and review link and then log into Google, then give us a review!

 

You can choose between 1 and 5 STARS and write in what you think about the tax or accounting work we have done for you.

 

It's that simple.  Thank you in advance for your help and cooperation!

 


 

As always you can call our offices if you have any questions about these or any other accounting related issues, at 925-634-2344. 

 

Regards, Michael Uadiale, CPA, ACA, CGMA

Managing Partner, SMEED CPA, Inc.

 
 

 

SMEED CPA, Inc | 201 Sand Creek Road, Suite F | Brentwood, CA 94513
The Next Frontier CPA Firm | www.SmeedCPA.com | info@smeedcpa.com
Phone: 925-634-2344 | Fax: 925-634-2346 | Cell: 925-207-6771