When Is the Last Time You Assessed Your Life Insurance Needs?
It may be something you have never considered or haven’t considered in a while. Perhaps you just got married, had a baby or started a new business. If you have never considered life insurance or have had a change in life circumstance, it may be time to sit down and look at your options.
A recent study conducted by Life Happens and LIMRA (a worldwide research organization focused on the life insurance market) found that a third of all households in the U.S. would have immediate trouble paying for living expenses if their primary wage earner died unexpectedly. That group includes those without life insurance and those who are underinsured (have life insurance, but not an adequate amount for their circumstances). If you find that you fall into one of these categories, there are some important things about life insurance you should know.
- Protects Your Loved Ones. Insurance is one of those things you hope you never need to use but it is extremely important for your loved ones. We don’t know when our time will come, but if you have young children at home or a spouse, it can leave a heavy financial burden on the family. Paying bills, mortgage, car payments, medical expenses, etc. can be a heavy burden left to your family and life insurance will help ease these financial burdens. If you have a child going off to college and you are cosigning their student loans, you may also want to consider having them take out a life insurance policy to protect you in a worse case scenario. As the cosigner, you are liable for any debt should your child not be able to pay it, which could put a large and unanticipated financial strain on the family. The good news is a life insurance policy for a young and healthy individual is generally very affordable.
- Pays for Funeral Expenses. Even death isn’t cheap these days. Funeral expenses can cost upwards of $10,000. The last thing a grieving family should worry about is paying for a funeral. Adequate life insurance should cover the funeral costs and ensure that no debt is incurred paying for your final expenses.
- Supplements Your Savings. Whole life insurance can be a good way to supplement your personal financial strategy. For instance, whole life insurance may be an especially valuable source of supplemental retirement income since your life insurance policy’s cash value is guaranteed, regardless of market conditions.
- Protects Your Business Too. If you own a business, life insurance is an important asset. In the event of your death (or the death of a business partner), life insurance can protect your business from financial loss, liabilities and business disruption.
- Offers Peace of Mind. At the end of the day, knowing that your retirement, business and loved ones are protected is comforting. The last thing anyone wants to struggle with is financial strain when a loved one has passed. While no money can ever replace our loved ones, insurance can help mitigate life’s uncertainties.
If you would like to speak with an agent about life insurance for you and your family, we have a team at Brooks, Todd & McNeil that can look at your specific needs and make sure you and your loved ones are fully protected.