- December 21, 2016
- Posted by: Liam Dai
- Category: Uncategorized
WHY DO I NEED LIFE INSURANCE?
While it may not be the most pleasant topic to think about, taking out a life insurance policy can help protect your family’s future. Much like a filling out a will, you are ensuring that your wishes are carried beyond your lifetime, but what’s most important is that life insurance proceeds may help your family carry on in your absence. Ask yourself a few hypothetical questions:
- “If I passed away, would my family face financial hardship?”
- “Will my family be able to afford the home they live in, or would they have to downsize?”
- “Could my family maintain their standard of living?”
- “Will my family have the money cover my final expenses?”
- “Without proper insurance coverage, will I be leaving my family in debt?
If you’re unsure of the outcome, life insurance can provide the answers you’re looking for. In this article, we’ll take a look at some of the more popular uses for taking out a life insurance policy.
Why Should I Consider a Life Insurance Policy?
Everyone’s life insurance needs are different. To determine what type of coverage you may need, consider some of the following questions:
- Do you have an aging parents or disabled relative that depend on you for financial (and other) support?
- Do your children have their future higher-education adequately funded?
- Do you have a lot of assets and expect to owe a large portion to estate taxes?
- Do you run a business with another partner?
- Do you have a substantial loan (or substantial joint financial obligation) that may burden another person after your death?
If you answered “yes” to any of these questions, life insurance may offer a solution to your worries.
Maintaining the Current Standard of Living
Reviewing your life insurance needs annually is a good course of action to follow. Some events that may make you consider how much and what type of insurance policy you may need are:
- Birth/Adoption of Children: Simply put, children are expensive! If you passed away, would savings and reduced income be enough to pay for daycare, college, and so forth if something were to happen to you and/or your spouse.
- Marital Status:For those who are newly married or those who tied the knot long ago, ensuring that your spouse can carry on without a financial crisis with life insurance can be a sound decision.
- Housing:Could your spouse, children, and/or relatives manage the remaining mortgage payments on your current without your income? Factoring in property taxes, home maintenance, utilities and homeowners insurance, would your home be at risk for foreclosure? If so, life insurance may be for you.
Fund the kids’ college education
It doesn’t look like the cost of college is going to significantly decrease anytime in the near future. Your life insurance policy can be an excellent way to ensure that your children carry on their efforts towards a higher education, whether you’re present for graduation or not. By setting aside a fund through a whole life insurance policy, or a significant death benefit upon your passing (both term and whole life policies), your contributions will ensure that your children can focus on their education.
Pay for final expenses
If there’s one thing a breadwinner hates, it’s becoming a burden. In conjunction with a last will and testament, life insurance can provide coverage for final expenses, which includes funeral home costs, casket/cremation, and other intangibles that may adversely affect your family’s financial well-being. This can help your family through the grieving process and leave a caring impression as your life’s final act.
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Covering all of the possible outcomes of your death is not only morbid, but can be confusion. How can one account for all the situation that life throws us? No one can predict the future, but contacting the insurance advisors at RiskBlock can be the first step for ensuring your coverage protects your family.