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Long, long ago, there were Indians that lived on Timpanogos. Every year they gave a sacrifice to the great god Timpanogos.

One year it was very dry, and the Indians thought the great god was angry with them.

The Chief had a young daughter who was very beautiful and of age to be chosen as the sacrifice. All the young girls in the tribe were blindfolded and given an opportunity to choose a pebble from a pottery dish. The chief's daughter, Utahna, chose the black pebble. It was her fate to go atop the mountain and be the sacrifice.

All of her tribesmen were sad and they wanted someone else to go instead. But, she bade her friends goodbye and ascended the mountain, winding her way towards the highest peak.

When she reached the top, she knelt in prayer. Begging for rain, with her arms outstretched, she made her plea to the God of Timpanogos. A handsome young brave had watched her and followed her to the top. "Please do not jump!" Red Eagle said. Utahna thought Red Eagle was the Great God of Timpanogos. He led her to a cave and there they lived for many years. As time went by the two fell in love.

One day Red Eagle was attacked and injured by a bear. Because he was hurt, Utahna knew he was not the Great God of Timpanogos. She cared for him until he got well, then she left one morning to ascend the mountain and complete her sacrifice.

When the sun was up, she stretched out her arms and leaped to the crags below. Realizing too late where she had gone, the young warrior found and gathered her broken body in his arms and carried her to the cave. In the cave their two hearts were made into one, as we see in the Great Heart of Timpanogos.

If you look closely at the mountain, people say you can see an outline of Utahna lying on the top of Mount Timpanogos.

Assess Life Insurance Needs

If your family relies on your income, it’s critical to consider having enough life insurance to provide for them after you pass away. But too often, life insurance is an overlooked aspect of personal finances.

In fact, according to a 2019 study conducted by Life Happens and LIMRA, which closely follows life insurance trends, nearly 50 percent of Americans say that they have no life insurance coverage at all, even though over two-thirds of Americans recognize the need to obtain it.1

Role of Life Insurance

Realizing the role life insurance can play in your family’s finances is an important first step. A critical second step is determining how much life insurance you may need.

Several factors will affect the cost and availability of life insurance, including age, health, and the type and amount of insurance purchased. Life insurance policies have expenses, including mortality and other charges. If a policy is surrendered prematurely, the policyholder also may pay surrender charges and have income tax implications. You should consider determining whether you are insurable before implementing a strategy involving life insurance. Any guarantees associated with a policy are dependent on the ability of the issuing insurance company to continue making claim payments.

Rule of Thumb

One widely followed rule of thumb for estimating a person’s insurance needs is based on income. One broad guide suggests a person may need a life insurance policy valued at five times their annual income. Others recommend up to ten times one’s annual income.

Famliy under umbrella

If you are looking for a more accurate estimate, consider completing a “DNA test.” A DNA test, or Detailed Needs Analysis, takes into account a wide range of financial commitments to help better estimate insurance needs.

The first step is to add up needs and obligations.

Short-Term Needs

Which funds will need to be available for final expenses? These may include costs of a funeral, final medical bills, and any outstanding debts, such as credit cards or personal loans. How much to make available for short-term needs will depend on your individual situation.

Long-Term Needs

How much will it cost to maintain your family’s standard of living? How much is spent on necessities, like housing, food, and clothing? Also, consider factoring in expenses, such as travel and entertainment. Ask yourself, “what would it cost per year to maintain this current lifestyle?”

New Obligations

What additional expenses may arise in the future? What family considerations will need to be addressed, especially if there are young children? Will aging parents need some kind of support? How about college costs? Factoring in potential new obligations allows for a more accurate picture of ongoing financial needs.

Next, subtract all current assets available.

Liquid Assets

Any assets that can be redeemed quickly, and for a predictable price, are considered liquid. Generally, houses and cars are not considered liquid assets, since time may be required to sell them. Also, remember that selling a home may adjust a family’s current standard of living.

Needs and obligations – minus liquid assets – can help you get a better idea of the amount of life insurance coverage you may need. While this exercise is a good start to understanding your insurance needs, a more detailed review may be necessary to better assess your situation.

1. Life Happens, 2019

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2021 FMG Suite.

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