Which insurance policy is right for you?

Which insurance policy is right for you?

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How to determine, according to New York-based John Savignano


According to John Savignano CPA, “IInsurance is very powerful in terms of what you can do with it. And he shares his knowledge on how to choose the best policy and make it work for you.

Purchasing life insurance can be motivated by a number of different reasons. Because each person’s situation is different, determining the right one involves understanding what the insured hopes to accomplish with the money in the event of death.

John Savignano’s approach to finding the perfect policy

John Savignano CPA, Bottomline Consulting CEO, became interested in finances when her grandmother gave her money to invest for her. Since then, he has honed and expanded his financial skills while establishing a level of trust among his clients.

As the founder and president of Savignano Accountants & Advisors, John Savignano provides a range of financial services including business valuation, accounting and information technology to clients of large New York City Region. His objective is to obtain a clear picture of the situation of each of his clients in order to be able to develop the ideal financial advice.

Protecting loved ones: the most common reason to buy life insurance

According to John Savignano, the main reason given for buying life insurance can be stated very simply: “If a loved one dies, you want to make sure that the survivors are able to survive.” To find the policy that best suits a specific individual, it is necessary to dig deeper.

A married person with a young child or two who is the sole breadwinner has very different needs than someone whose spouse is also working while they send their children to college. For the first scenario, a term life insurance plan might be the right choice.

Said Savignano, “Term insurance is very cheap. Maybe a few hundred dollars a year [you] can buy, especially if you are young and healthy. For a few hundred dollars a year, you can buy yourself a $500,000 policy. This type of insurance tends to be affordable and allows the insured to purchase a significant amount of life insurance at an affordable price.

As one ages, permanent life insurance that offers the option of a cash payout may be more suitable for the insured. Permanent life insurance pays a death benefit regardless of when the insured person dies. There is also a savings element with this type of life insurance.

Savignano says, “A universal life insurance policy acts like a bank account. So it could be another type of asset investment for you that if you want to put money aside, it’s like a deferred retirement account can put money aside. Income could be generated tax-free.

Protecting a commercial interest

Another way to use life insurance is to protect applicable interests within a business. If one of the partners dies, the other can buy out their stake in the business and maintain it as planned. Without the right type of life insurance policyhowever, the company could flounder – and possibly not recover at all – while the estate makes its way through the courts.

Coverage against property taxes

Although it has long been used by the wealthy as a hedge against property taxes, this strategy can also be used by others as a way to build wealth. By taking out generous life insurance policies, on the death of the insured, the insurance company pays inheritance tax.

“If you decide not to have a will or estate plan, just think about where you put your loved ones, in case someone takes you,” Savignano cautions.

Along the way, the money the insured puts into the policy grows and compounds. It has been used by people to acquire massive wealth in an easy and discreet way.

Estimation of life insurance needs

Some people buy life insurance to ensure that their final expenses are paid and do not become someone else’s responsibility. For most people, however, the reasons for purchasing this type of insurance encompass several objectives.

Keep the following factors in mind when considering how much life insurance to purchase.


Consider not only the income the insured adds to the household, but also how long that money will be needed by the survivors. A good way to think about this is to multiply the insured’s annual income by the number of years until their youngest dependent graduates from high school.

Education of dependent

If a dependent attends private school and/or the insured wants to ensure there is enough money for college, the life insurance policy amount should reflect this. The cost of college can vary widely, but aiming for $150,000 for each dependent is a good start.


In addition to credit cards, vehicle notes, personal loans, and other types of debt, determining the actual amount of a mortgage loan repayment is crucial. Many people also have a second mortgage or home equity line of credit.

Adding up all of an insured’s debts will help determine the type of life insurance vehicle appropriate for their particular situation. Include in this figure at least $10,000 for their final expenses.

It is important to note that the financial aspect is not the only factor to consider when determining the best life insurance policy. The key is to look at all the other elements of the insured’s life — aging parents, a disabled child, or business ownership, for example — that might affect the type and amount of coverage needed. .

Looking at the big picture, down to the finer details – and how they all interconnect – ensures that the insured has the necessary coverage in the unfortunate event of their death.

And find an advisor like John Savignano.

“I have the trust factor with my clients. I think I can do more due diligence on whether or not they need a policy and what policy they need and actually sit down with them and educate them about it and give them the right politics and make sure it’s a good long… term that works for them,” he says. “And that’s pretty much why I got into this.”

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