Life insurance...do I really need it?
We are often asked if you really need life insurance. The answer is well, you tell me?
Here are some examples of people that choose to have life insurance:
1. Homeowners that still have a mortgage choose to carry life insurance to cover the mortgage and/or payments so your family does not have to worry about how to make that payment if you were to die.
2. Do you carry a co-signed debt such as student loans or credit cards? If so, some people choose to carry life insurance to cover the debt.
3. Do you provide a income for your family? Some people choose to carry life insurance to replace that income if something were to happen to them.
4. Are you a stay at home parent? This is probably the most under insured group of people we see. Life insurance would cover the cost of paying for services the parent does for “free,” such as child care, cooking, cleaning, etc. Basically, there is no amount high enough to cover all you do!
5. Are you divorced and have kids? A policy could cover the support payments that a divorced parent makes or provide college savings for the child when older (trust would be set up...see your attorney).
6. Do you have a special needs child? Life insurance can make sure the child will have financial support even if you are gone. Again...see your attorney.
7. Do you have a high net worth? Life insurance can provide funds for heirs to pay the estate taxes.
8. Do you want to help your loved ones so they do not have to pay for your funeral out of pocket? If so, life insurance is a way to do that!
9. Do you want to leave some money to someone after you are gone? If so, life insurance is a way to do it!
10. Do you only have life insurance through work? Did you know that usually, that life insurance policy is NOT transferable after you leave your job? We have seen it many times. People in their 50's getting let go and they have zero life insurance. Of course, now they have many medical issues and it is harder to get life insurance (Not always impossible, just harder).
There are many reasons people buy life insurance. These are just a few. So, no one can tell you if you need life insurance. That is something we can help you determine based off of your particular