WHY LIFE INSURANCE

Life insurance is one of the most important parts of a family's overall financial plan. In fact, purchasing a life insurance policy could be the most important decision you ever make. It is vital to have all of the information necessary to make an informed decision when it comes to making a life insurance purchase.

Life insurance, in its simplest form, is income replacement. In the event that you're not here, it takes care of those who financially depend on you. The life insurance policyholder pays a premium (monthly, quarterly, semi-annually or annually) in return for a life insurance company's promise to pay the death benefit, or face amount, to the named beneficiary. The policy provides your dependents with money to replace your income that will be lost at your death.

The value of a life insurance policy is the peace of mind it provides; knowing that if you died tomorrow, your surviving loved ones would receive the value of the Life Insurance policy.

Life insurance is guaranteed protection against the sudden loss of income that would result if the policyholder passed away. The beneficiary is eligible to receive the proceeds and is therefore protected from the financial impact of the death of the insured. If someone depends on you financially, you need life insurance.

MARRIED WITH NO CHILDREN

Married couples share financial obligations. That's why it's important for each spouse to have their own life insurance policy. In the event of a spouse's death, a life insurance policy would allow the surviving spouse to cover shared expenses.

MARRIED WITH CHILDREN

It's not only important that your spouse is protected, but it's important that your children will be able to continue living the lifestyle they're used to. When buying life insurance, consider their financial needs, such as living expenses, college tuition and marriage.

SINGLE PARENT

Single parents serve as the primary caregiver, breadwinner, cook, chauffer, entertainer and more. With so much responsibility and no spouse to share it with, there's no question single parents need life insurance.

STAY-AT-HOME PARENT

Stay-at-home parents make very large financial contributions to their families. For example, things like childcare, transportation, cleaning, cooking and household management all cost money. If you are a stay-at-home parent, it is important to have a life insurance policy that is sufficient enough to cover the cost of these responsibilities if you are no longer around.

RETIRED

If you have an estate, your heirs could be hit with a large estate tax after you die. The proceeds of a life insurance policy are usually paid out immediately, allowing your heirs to cover the estate tax and other final expenses.

SMALL BUSINESS OWNER

Life insurance can protect your small business. If you, a partner or another key employee died, a life insurance policy would cover the business' financial loss. Life insurance for businesses can be structured to fund a "buy-sell" agreement, where the surviving partners would have the funds to buy the company interests at a previously agreed upon price. This is called “key person insurance," which provides the owners with the proceeds needed to hire a replacement.

SINGLE

Single people need life insurance, too. For example, some singles provide financial assistance for ill parents, and some people are carrying significant debt, like student loans, that they wouldn't want to leave their co-signers with. But also consider insurability. Buying a life insurance policy while you're young and healthy will guarantee your insurability for life (you never know what the future holds in terms of your health).

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