Why buy life insurance?

Whether you're married with kids or have a partner or other relatives who depend on you financially, having life insurance can be important. Life insurance?provides money, or what's known as a death benefit, to your chosen beneficiary after you die. It can help give your loved one’s access to money when they need it. Life insurance is an affordable way to protect your family financially in the event you’re not there to take care of them. Life insurance can help with things like paying the mortgage, college tuition, final expenses and more.

Insurance can be confusing and it’s hard to know what?you really need or want. But here are five very good reasons?why you need life insurance.

As we grow older, get married, build families and?start business, we come to realize more and more that life insurance is a fundamental part of having a sound financial plan. Depending on your type of policy, life insurance is cheap, which means there’s no excuse not to?get coverage now. Plus, over the years, you’ll find comfort in knowing money will be available to protect your loved ones in the event of your passing. Here are a few other reasons why life insurance having is important.

TO PROTECT YOUR FAMILY AND LOVED ONES

If your loved ones depend on your financial support for their?livelihood, then life insurance is a must, because it replaces your income when you die. This is especially important for parents of young children or adults who would?find it difficult to sustain their standard of living if they no longer had access to the?income provide by their partner. You will also need to provide enough money to cover the costs of hiring someone to cover the day-to-day household tasks, like cleaning, laundry, cooking, childcare and everything else a growing family need.

TO LEAVE AN INHERITANCE

Even if you don’t have any other assets to pass to your heirs, you can create an inheritance by buying a life insurance policy and naming them as beneficiaries. This is a great way to set your kids up for a solid financial future and provide for any?monetary?needs that will arise.

TO PAY OFF DEBTS AND OTHER EXPENSES

In addition to providing income to cover everyday living expenses, your family needs insurance to cover any outstanding debts, like the mortgage, credit cards and?car loans. Other?expenses include funeral and burial costs that can easily run into the tens of thousands of dollars.?You don’t want your spouse, parents, children, or other loved ones to be left with any extra financial burden?in addition?to the emotional burden they’re already suffering.

TO ADD MORE FINANCIAL SECURITY

Like most parents you probably want to know your kids will be well taken care of when you’re gone. You not only want them to get a quality college education, but to provide for other life ventures like getting married or?starting a business. For this reason, additional coverage is essential while your kids are still at home.

TO BRING PEACE OF MIND

We can’t know?when we’ll pass away. It could be today, tomorrow or 50 years from now, but it will happen eventually. No amount of money could?ever replace a person. But more than anything, life insurance can help provide protection for the uncertainties in life. Without a doubt, having life insurance coverage will bring you and?your?family peace of mind. It’s one thing you can be sure of, and you’ll no longer have to question whether?they’ll be taken care of when you’re gone.?Life insurance protects your heirs from the unknown and helps them through an otherwise difficult time of loss.

Individual Life Insurance.

You can’t put a dollar amount on your family, but you can ensure their future is protected. We can’t predict when the unexpected will happen, but we can help you prepare for it when it does.

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The most important investment you can make for your family.

Individual life insurance is arguably the biggest investment you can make in your loved ones’ security. It’s a complicated field, but don’t let that put you off. We’ll be happy to talk you through the options.

?Choosing between term, whole, and universal life insurance.

First, you’ll need to determine the type of life insurance you want to buy, with the most common types being term life insurance, whole life insurance, and universal life insurance. Each has its own way of paying out, and the plan you choose can be best determined by your individual needs.

?Protecting Your Small Business

Risk Factor

If you passed away, would your business suffer? There are many complications and financial issues that can arise due to the death of a business owner. Many people overlook this predicament.

?Solution

A life insurance policy can keep a business moving along even during tough times, such as the loss of the business owner/partner. Key person life insurance is payable to the company and provides money for training and hiring of a new employee. A buy-sell agreement, funded by life insurance, allows the other partners in the business to buy the deceased’s share of the business, which will provide money for his or her family.

Spousal Support / Income Replacement

Risk Factor

Many people mistakenly think that they don’t need life insurance if they don’t have children or if their children are grown. However, your financial responsibilities fall to your family when you are gone.

?Solution

Life insurance can replace the income you would usually bring in and help support your spouse or adult children, ensuring your loved ones are able to maintain the lifestyle they're accustomed to.

Providing for Your Family

Risk Factor

Raising a child can be a rewarding life experience, but it is also very expensive. It costs hundreds of thousands of dollars to raise a child to age 18, with college tuition, fees, room, and board resulting in another potentially enormous expense. If you were to die tomorrow, would funds be available to provide for food, clothing, day care, and educational expenses for your child?

Solution

Having life insurance could secure the future for your children if you have an untimely death. With a life insurance policy, there could be enough income to help pay for everything your child might need while growing up.

Funeral Costs

Risk Factor

An average funeral can cost tens of thousands of dollars, and that's without unnecessary options or luxurious services. A death in the family is stressful enough; why add the hefty bill of a funeral to that stress?

?Solution

A life insurance policy can easily cover the cost of a funeral. Your family will be able to think of you and have peace of mind without being burdened by funeral costs.

Protecting Your Retirement Savings

Risk Factor

Once you retire, you will be living off social security, and if you are lucky to have them, a pension or retirement fund, too. But what if the surviving spouse has been relying on you to fund retirement for the couple? Premature death of an earner can affect sources of retirement benefits such as Social Security.

Solution

Life insurance can help support a surviving spouse during their retirement.

Mortgage Payments

Risk Factor

After your death, any outstanding debt and financial obligations do not disappear. Your home is probably the costliest and most significant property you own. A mortgage payment is a large burden for a spouse or partner to carry.

?Solution

A life insurance policy would allow your spouse or children to pay off your outstanding debts and spare them the stress of making monthly payments on the home.

Auto Payments

Risk Factor

Many families lease or finance their automobiles these days. If the primary earner in the family were to die, the family could be left with outstanding car payments for years to come.

Solution

A life insurance policy would allow your spouse or children to pay off your outstanding debts and spare them the stress of making monthly payments on your car(s).

What is term life insurance?

With term life insurance, you pay regular premiums for a set period and the policy only pays out if you die during this period.

?What is whole life insurance?

With whole life insurance, there’s no set period. You usually pay regular premiums until you die, at which point the policy pays out. Sometimes you have the option to take a lump sum back while you are still alive, but this will reduce the amount paid out when you die.

?What is universal life insurance?

Universal life insurance works in a similar way to whole life insurance, but you have more flexibility about taking money early. You can even borrow money and repay it later; although, if there’s any loan outstanding when you die, the policy’s payout can be significantly affected.

?What to consider before getting life insurance.

The premiums you pay depend heavily on your age and medical history, along with the amount you want the policy to pay out. So, it’s important to seek expert advice before committing to life insurance. Contact us and we’ll walk you through the options and help you to determine if term life insurance, whole life insurance, or universal life insurance are right for you...!!