Life insurance is meant to help protect your family’s financial future. In the case of your untimely death, life insurance is a key security coverage for your loved ones. It will give you security in knowing your family is protected. But there are several other reasons why a life insurance policy is necessary, besides offering financial assistance.
Life insurance is about taking care of loved ones.
It’s about meeting responsibilities and keeping promises. You view your decision to purchase life insurance from your family’s point of view, not your own. You see life insurance as a tool that protects your spouse and children from the potentially devastating financial losses that can result if you die prematurely.
Life insurance is for the living.
It’s not about you. You know that, should anything happen to you, the life insurance you have purchased is in place to protect and provide financial relief for those who must carry on without you. It’s about them.
Life insurance is an expression of love and caring.
Because you care about your family, you want to ensure the financial security of family members if you’re suddenly not around to provide it.
Should you die, the proceeds will help you keep the promises you have made to the people who are important to you.
By protecting their financial future, you’re enabling your loved ones to maintain their lifestyle, if something unexpected should happen to you.
Life insurance buys time and options.
Too often, when an income earner dies, survivors are forced to make tough, dramatic decisions—and to do so quickly. They have to make the decisions at a time when they may not be emotionally in a position to make good choices. Life insurance gives survivors a chance to adjust over time rather than having to move to a downsized home or find a new job right away.
Your life insurance gives your family choices by providing the benefits to help pay off debts, to help meet housing payments and ongoing living expenses, to help fund college educations for your children or grandchildren, and much, much more.
Life insurance provides cash when it’s needed most.
Your life insurance policy can deliver a specified sum of money at the exact time of need. Upon your death, your family can be assured that the amount you’ve chosen—perhaps hundreds of thousands of dollars, maybe even millions—will be there almost immediately. And that death benefit is generally not subject to federal income taxes. For example, a $500,000 policy provides $500,000 in death benefit proceeds.
If you are not completely certain that your coverage is in line with your family’s needs, please contact us. When you meet, you’ll work together to determine how much coverage you need, review what products and policies are right for you, and review cost comparisons.
Now, look at this example.
Henry is a teacher with a wife and a son and makes $70,000 annually. He only has life insurance through work and covers 2 times of his annual salary.
His wife, Claire works as an administrative assistant and makes $45, 000 annually. Henry and Claire purchased a home three years ago, their son is 2 years old. Their mortgage loan is $400,000, have a car loan of $32,000 and the potential cost of sending children to university will total at least $60,000 in the next 18-20 years.
Unfortunately, Henry died in a deadly car collision on the way to work one morning, that $140,000 can perhaps cover his final expenses, car loan, and child’s university tuition down the road. (Assuming $30,000 for funeral, taxes etc, $60,000 for education, leaving $18,000)
Claire will now have to figure out how to raise the child, take care of daily living expenses, mortgage payments, child, and her own support with the income from her job.
Vs having Individual life insurance.
If, Henry has individual life insurance with the death benefit of $500,000. The total amount his family would have received is $640,000 (Group Life + Individual life). Claire would have paid her mortgage in full, have enough for their child’s education, paid off her car loan, spend a generous amount on her husband’s funeral cost, and still have over $125,000 cash. With her regular income and savings, she will be more comfortable supporting herself and the child.