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Life Insurance
Why should I buy Life Insurance?
Many financial experts consider life insurance to be the cornerstone of sound financial palnning. Most Americans do not have any life insurance and studies show that those who do have some life insurance - are dangerously underinsured.
The main reason for life insurance is to provide income replacement to your beneficiaries when you die. If you have bills, a car loan, a mortgage, you need life insurance. If you are the primary earner and your income is necessary to maintain the family household, the policy's death benefit can help provide for your dependents' needs. If you are interested in estate planning, cash accumulation, wealth transfer and estate tax liquidity, then life insurance can also help you achieve these goals.
Life insurance is an important asset in the following situations - please read the following statements and see if any apply to you. If they do, then you should seriously consider life insurance:
- You have a spouse.
- You have dependent children.
- You would like to create a source of savings for yourself.
- You have an aging parent or disabled relative who depends on you for support.
- Your retirement pension and savings are not enough to insure your spouse's future against a rising cost of living.
- You would like to pay final burial expenses.
- You have a sizeable estate - you would like to pay the federal and state "death" taxes.
- You own a business and you would like to see it survive, your passing.
- You would like to make significant charitable contributions.
What kind of life do you envision for your family? Most of us see our loved ones with a comfortable lifestyle, doing the things they love to do and living life to its fullest. Now imagine that picture without you. If you were gone, would your family be financially able to continue the lifestyle you want for them? Or would the absence of your earnings jeopardize what you want? That's what life insurance is for: to make sure that your financial support of your family is there even if you aren't.
A general rule of thumb is that you should have at least six times your annual income in life insurance. But in determining what is best for you, you'll also want to consider other obligations you may have and whether or not you want to have them completely or partially paid for upon your death. Such expenses include your mortgage, outstanding debts and future college expenses for your children.
The main types of life insurance on the market today fall into two categories: term and permanent.
For a free no obligation life insurance quote, please fill out our life insurance quote form.
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