Why is Life Insurance Important to You?

In addition to providing an inheritance for a loved one, life insurance can also provide additional benefits that can assist with lifetime planning.

If a family member or child has special needs, purchasing a life insurance policy that is owned in a trust can ensure that there will be additional control over the funds throughout all stages of their lifetime. Providing the added security that regardless of what the future holds, the inheritance that is left behind will be dedicated to cover expenses related to their care, education and daily living needs.

As a single income household, typically the breadwinner purchases life insurance to ensure there is income protection to cover the family’s daily living expenses in the event something were to happen to them. Insuring the life of a stay-at-home parent provides the added protection to cover costs associated with daily child care along with other activities that the stay-at-home parent maintains to keep the household running.

If you are a co-signee on an application for a student loan, car payment or credit card, should something happen to either party, the survivor would be responsible for that debt. Life insurance provides the additional financial protection of helping to pay off the loan, in the event the co-signee passes away. This is extremely beneficial, especially for a young adult who would be responsible for the debt going forward.

If an individual has parents who are dependent on them, whether it be financially or for daily living assistance, life insurance can provide the financial security that the cost of caregiving would be covered and maintained in the event of their passing.

While preparing for retirement years, many individuals will contribute the legal maximum, or ‘max out’on their IRA, 401K, or other qualified accounts. The cash value component within a life insurance policy can provide supplemental income during retirement years to assist with unexpected expenses such as health care costs.