Whom in your life do you most need to protect?
It is not easy for anyone to think about dying, but have you ever wondered what
would happen to your loved ones if you died suddenly and unexpectedly? How
would you answer these important questions:
Would your family be able to maintain their current standard of living and
continue to pay the mortgage without financial hardship?
Would your spouse or partner be able to support your family household on a
Would your children have enough money to attend college?
Would your family have sufficient cash flow to cover immediate expenses such as
your funeral costs?
These are certainly tough questions to consider, but ones that must be answered
if you want to provide a secure financial future for those you love. Life is
full of uncertainties, which is why it is important to think carefully about
your life insurance needs and plan accordingly.
Life Insurance Benefits
No matter what your current stage of life, there are always financial
obligations that need to be addressed. Even if you recently graduated from
college and are starting your first career job, it is important to think about
the benefits life insurance can offer. For example, if you have a lot of
college loans, upon whose shoulders would they fall if you weren't here to pay
back your debt? Or maybe you are a single mother of two young children - who
would care for them if something happened to you?
Life insurance can:
Offer a tax-free benefit to your beneficiary after your death to pay for
immediate expenses and help sustain your family's standard of living.
Add more stability to your financial retirement plan.
Give you greater peace of mind knowing that you have a financial safety net in place to care for those you love after you are gone.
Types of Life Insurance
There are basically two primary kinds of life insurance: term and permanent.
Term life insurance offers basic, low-cost protection designed to cover the
possibility of death for a defined period of time - for example, 10, 15, 20, or
30 years. It is an attractive life insurance option for those with short-term
needs. As long as premiums are paid on time, if you die within the specified term
period, then your beneficiary
receives the death benefit. However, no benefit is paid beyond the end of the
term period. Because a term life insurance policy does not accumulate cash
value, it is one of the simplest and least expensive kinds of life insurance
Permanent life insurance, on the other hand, offers you protection for your
entire lifetime (as long as your policy premiums are paid on time). In addition, a
permanent life policy does accumulate cash value, so it can be surrendered for
payment (minus any outstanding loans or applicable surrender charges) before you die.
Depending on the exact
terms and conditions of the policy, in many cases premium payments for
permanent life insurance, once issued, are guaranteed and remain constant
regardless of your age or state of health.
What to Consider
Life insurance can provide you, your family, and/or business with the
foundation for a secure financial future. How much life insurance you buy is a
very personal decision. There are a number of considerations to think about
when deciding how much and what kind of life insurance you might need:
Your current stage of life
(including your age, responsibilities, and overall health) - How many
dependents do you have? Are you an only child whose parents are still living?
Are you in fairly good health?
Your current amount of debt
- After you die, will someone be left with a large burden of debt?
Immediate expenses after your death
- Have you planned sufficiently to cover immediate expenses (e.g.,
funeral/burial costs, uncovered medical bills, other unforeseen expenses,
Your family's future needs
- How many children do you have and will they be going to college? Do your
children require any special medical attention?
Your personal/business goals - Are you a self-employed person
who needs to plan for the next generation of your business?
For More Information
To learn more about what other life insurance products may be right for you,
consult with your insurance agent or financial professional. A financial professional can help you
evaluate your entire financial picture and suggest specific life insurance
options tailored to your personal needs and current life situation.
Do you have a question about your life insurance policy? Please contact us
anytime for assistance.
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