Why do I need life insurance?

Over the years, that is the number one thing I hear the most. Why do I need life insurance? I even said it myself when I was younger. Let’s go over a few reasons it makes good sense to have life insurance.

Life insurance provides protection in many ways to make sure your family is protected if something should happen to you or your spouse. Mortgage protection is our first reason. Say you bought a house, got married, have children and have a mortgage. A life insurance policy could pay off the remaining amount owed on the mortgage if the primary wage earner passed away and still owes a lot of money on the mortgage. Don’t confuse this type of insurance with home owners insurance. These are NOT the same.

Next is income replacement. Take a look at your current financial responsibilities and purchase a policy that would cover those expenses in case of a wage earner prematurely passing away. This policy would be able to cover the expenses leaving the surviving dependents without additional burden. What if your spouse passes away? What roles were they responsible for. It will take money to replace income, child care, cleaning services or any other roles that person was responsible for. What about college in the future for children? Make sure you plan for all income replacement.

Final expenses. What if you need money for burial costs and any other minor expenses after an individual passes. Typically these policies tend to be easier to qualify for as they are for final expenses.

Business protection. Say you are married and own a business with a business partner who is married as well. A buy-out life insurance policy can be purchased to allow a business partner to buy-out the spouses interest in the business in the case one prematurely pass away. Another protection that may be needed in a business is key person in which a small company has a few key people running the business. If one of the key people in the company prematurely passes away, the company would be financially set back because of the responsibilities the person had were specific and unique. If it takes quite a bit of time for that position to be filled, the company may need cash flow from the insurance benefit.

The next topic is supplementing a retirement income. There are many products depending on your need. Just remember, you shouldn’t keep all of your retirement eggs in one basket. Diversify a portfolio with a life insurance policy that ears cash value. 

Let’s talk about these options when you’re ready. You can request a quote at no cost to you, or if you’re ready, you can request an application. I am here to help you with questions you have. 

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