Life Insurance – What Is It and Why Do I Need It?
What is it?
Life insurance is a crucial step in planning for your future and your family’s future. It can fulfill promises and obligations to your family if you are no longer living. The death benefit is income-tax free and can be used to cover funeral expenses, repay debt, provide education, and pay estate taxes or any other expenses your survivors may incur. Life insurance may also be used to help ensure that a family business will pass to your intended survivor. There are also benefits to certain types of life insurance plans during your lifetime.
Why Do I Need it?
Most of us need life insurance – whether we like to think about it or not.
Consider this. If you died tomorrow:
- What would happen to your loved ones financially?
- Would funeral expenses, outstanding debts and other bills get paid?
- Would they be able to meet ongoing living expenses like the rent or mortgage, food, clothing, transportation costs, healthcare, etc?
- What about your planned, long-range financial goals?
- Without your contribution to the household, would your surviving spouse be able to save enough money to put the kids through college? How about retire comfortably?