Why do you get life insurance? It may be because you understand that tragedy can strike in a moment. Or perhaps you may want to make sure your family is taken care of after you’re gone.
Life insurance helps provide you and your family with peace of mind for your future needs.
Insurance payouts may cover mortgage, car payments, and other ongoing debts so that your family can sustain a comfortable standard of living.
Here are six reasons to consider for buying life insurance: 1
1. To pay funeral and burial costs
2. To cover children’s ongoing expenses
3. To replace lost income
4. To pay off debts
5. To buy a business partner’s share
6. To pay taxes
Reexamining your insurance needs.
Is there a time in your life when you no longer need life insurance? For example, your children are grown, your debts are paid, you’re retired, your savings are adequate, and retirement income levels are sustainable.
How do you determine your life insurance needs at different stages in life? 2
If you’ve achieved your retirement goals and built robust savings, you may not need life insurance coverage or you may want to reduce it. However, before you make changes, review your finances closely to see what options are best for you.
Examine pension and other retirement funds to make sure proper survivor designations are in place and sufficient benefits will be available. A minor income reduction, for example, can significantly hamper a survivor’s lifestyle and ability to keep pace with ongoing expenses.
You may need life insurance to cover peripheral financial expenses, such as estate taxes, retirement distribution fees, or charities. Owners of larger farms or businesses may need additional coverage to pay unanticipated taxes or other fees to avoid losing the properties.
Long-term care later in retirement may cost thousands of dollars per month. Life insurance may help offset or cover potential medical expenses or maintain care insurance payments. 3
You have several options that are worth exploring that may help you streamline your insurance needs.
If you would like to discuss your current financial needs or review your current policy, we’re happy to talk.