If someone will suffer financially in the event of your death, chances are you need life insurance.
Life insurance can fill a wide variety of needs, including covering a mortgage, college funding, providing for aging parents, and taking care of your final expenses.
70% of Americans consider life insurance a necessity for themselves, yet 41% have no life insurance at all.
2017 statistics from the industry groups Life Happens and LIMRA
To help you understand how life insurance might apply to your particular situation, a number of different scenarios are outlined below:
Are You Single?
Nearly all single people believe they don’t need life insurance because no one depends on them financially. If you’re fresh out of college, you might want to consider that hefty student loan debt you’ll be passing on to your parents if they were co-signers. Young, single people are generally at their peak health and can take advantage of the best life insurance rates.
Are You Married?
Many couples mistakenly believe they don’t need life insurance until they have kids. Not true! Ask yourself what would happen if one of you died. Could the surviving spouse afford to absorb debts like car loans, and credit cards? How about a mortgage plus the other monthly bills? If you’re planning to have children someday, don’t wait. Many insurance companies won’t issue life insurance to pregnant women.
Do You Have Children?
Most families rely on two incomes to make ends meet. All parents have dreams and aspirations for their kids, and many want to see them go off to college someday. Life insurance can help make sure your future plans don’t die if you do.
Are You a Single Parent?
With so much riding on your shoulders, you need to make certain that your children are taken care of in the event of your passing. Nearly half of all single parents don’t have life insurance, and those that do say they don’t have nearly enough.
Are You a Stay-at-Home Parent?
You because you don’t have a salary doesn’t mean you don’t make a financial contribution to your family. Childcare, transportation, cooking, cleaning, and other tasks are all extremely valuable – and their cost is often underestimated. With life insurance, your family can afford to make the choice that best preserves their quality of life.
Do You Own a Business?
Besides taking care of your family, life insurance can pay off business debts if you die, help heirs to the business pay off estate taxes, or fund a buy-sell agreement that allows a business partner to buy out your share.
Do You Have an Empty Nest?
Just because your kids have moved out and your mortgage is paid off doesn’t mean that you no longer need life insurance. If you died tomorrow, your spouse would still need to provide for day-to-day expenses. Does your financial plan enable your spouse to maintain the lifestyle you’ve worked so hard to achieve now and into retirement?
Are You Retired?
Depending on the size of your estate, your heirs could be hit with an estate tax payment of up to 45%. A life insurance policy is payable immediately, allowing heirs to take care of these taxes, funeral costs and other debts without having to liquidate other assets, often at a fraction of their true value. Life insurance proceeds are also generally income tax free and won’t add to your estate tax liability, if properly structured.
Life insurance doesn’t have to be complicated or expensive. In fact, it is very affordable. Most people mistakenly believe that life insurance rates cost nearly double what they actually are.
Contact us today, and we will help you figure out how much life insurance you may need, and find a policy that fits into your budget.