What’s Your Goal?
Life insurance is a personal finance tool, plain and simple.
It’s a way to hedge your bets. It was created to pay money after somebody passes away. The who, the what, and the why almost seems painfully obvious: those with families buy insurance to provide protection should the odds not come up in their favor.
Take a look at the chart above. Do you know where you fall?
Income Replacement: You want to protect your family against the premature death of either yourself, your spouse, or another guardian and to use your life insurance to offset the loss of income.
Final Expenses: Part of the reason you are looking into life insurance is to help cover for funeral and other administrative expenses incurred due to loss.
Business Insurance: One of the most common uses of life insurance is actually related to businesses and business partners. The policies usually come in these 4 flavors:
Emergency Fund: Life never runs smoothly after a loss, especially a premature one. Life insurance policies can be tailored to include an emergency fund, meant to account for time taken off work, medical expenses, and counseling.
Estate Taxes: Don’t make the mistake of writing “payable to my estate” as your beneficiary! One way to hike up taxes is to add value to your estate; which really means you could end up leaving a highly-taxable estate to your loved ones. Instead, make your life insurance policy even smarter by having it help you curb estate taxes. See our recommended reading below and talk to one of our agents today to get started!
Charitable Giving: With some clever allocation, you can use your life insurance proceeds leave a gift to an organization without making too much of a dent in the overall size of your estate. Just use the death benefit to replace the value of the property gifted to heirs.
Special Needs Child: We want to give all that we can to our children, and life insurance policies can be tailored to provide funds for those with special needs.
Education Fund: Should the unthinkable happen, a life insurance policy can be used to make sure your children still receive the caliber of education you always planned for them.
Start Planning Your Future Today
As you can see, there are a host of ways to look at life insurance. The basic reasoning behind any policy isn’t complicated, however: you want the peace of mind that comes with knowing what you value is being taken care of.
All insurance is about peace of mind.
Thankfully, our quotes are quick, painless, and free. Request information today and we’ll be back to you within 1-2 business days (and we’re always trying to beat our own record)!
Bonus: Other Great Reads
Questions and Answers on Life Insurance - Tony Steuer
“The Why and How of an Executive Bonus Plan”
“How To Avoid Taxation on Life Insurance Leads”