Life insurance is a simple answer to a very difficult question: How will my family manage financially when I die? It’s a subject no one really wants to think about. But if someone depends on you financially, it’s one you cannot avoid, and you probably need to consider life insurance.
Here are some examples of specific life stages or life events that might trigger the need for life insurance.
Married or Getting Married
Many families depend on two incomes to make ends meet. If you died suddenly, would your spouse have enough money to cover funeral costs, credit card balances, outstanding loans and daily living expenses?
A Parent or About to Become One
Raising a child is one of the most rewarding things a person can do in life. But it’s also one of the most expensive. If you died tomorrow, would your spouse have the ability to provide your children with the opportunities you always dreamed they’d have? From diapers to diplomas, would there be enough income to pay for daycare, a college education and everything in between?
A Homeowner
If you’re like most people, your home is your largest financial asset. Life insurance can be used to pay down or retire the mortgage, sparing your family from moving to a less expensive place to live. Plus, it can provide the funds needed to help family members maintain the lifestyle to which they’re accustomed.
Retired or Planning for Retirement
If your children are on their own and your mortgage is paid off, you might feel your need for life insurance has passed. But if you died today, your spouse could outlive you by 10, 20 or 30 years. Would your spouse have to make drastic lifestyle adjustments to make ends meet? Adequate life insurance coverage can help widows and widowers avoid financial struggles in retirement.
Business Life Insurance
If you are a business owner and you are concerned about what would happen to the business if you or a particular key employee passed suddenly, then life insurance coverage may be a possible solution to ensure business continuity. Life insurance can be the funding mechanism for Buy/Sell agreements, replacing key persons in the business, and may serve multiple business related purposes as a special incentive or benefit to key staff members.
What type of Life Insurance is best for you?
The best type of policy for you is totally determined by your personal situation and needs. Let our Member’s Assurance professional agents help guide you and develop a plan to meet your personal and business needs.
TWO MAIN TYPES OF LIFE INSURANCE POLICIES:
Term Insurance
Term life insurance provides protection for a specific period of time, or the “term”. These are designed for temporary circumstances. A term policy makes the most sense when your need for coverage will disappear at some point, such as when your children graduate from college or when a debt is paid off.
Permanent Insurance
Permanent insurance offers lifelong protection, and with certain types of policy you can accumulate cash value on a tax-deferred basis. This cash account can be used for a variety of purposes, from helping you out of a tight financial spot, to providing funds to take advantage of an opportunity, to supplementing your retirement income, or increasing the death benefit amount for your beneficiary(s).
One of our Member’s Assurance professional agents can help you identify what you want your policy to cover, and how best to structure your personal or business life insurance plan.
