Why Life Insurance?

The first step to answering the question, “Why Life Insurance?” is to understand the necessity and importance of life insurance.  It is essential for a number of different reasons.   The most important reason is to provide income and asset protection for your family and loved ones when you’re gone.  The death benefit amount replaces the lost income.   A life insurance policy can, through its cash value account, become an asset from which you can take monthly distributions at retirement or use the account to fund your child’s education.

A Life Insurance policy offers many protections:

• It protects your family by providing a death benefit that is tax free for the beneficiaries.

• It protects the survivor’s choices for their future – if you own a home, the death benefit could pay off the mortgage so your family can stay in the house rather than being forced to sell it.
• It protects against the loss of income because the death benefit can be invested thus allowing the family to use the interest generated from the investment to replace the missing monthly income.   The family maintains its standard of living and covers everyday expenses such as groceries, bills, rent, the mortgage, etc.
• It provides protection for the family by providing enough money to take care of the final expenses so loved ones do not have to worry about these costs
• It protects your estate.

A life insurance policy can be an asset:

• Some policies include a cash value account that has increased through deposits and growth through the years that can be used at the proper time to supplement retirement income with tax advantaged aspects.

If your spouse or other family members depends on you financially, you need life insurance.

Nearly everyone needs one or more of the protections listed above.  Are you fully protected with the right kind of insurance and the right amount of life insurance?  Is your family fully protected against the loss of income and do you have an asset that brings you tax benefits in retirement?   If not, you have answered the question, “Why Life Insurance?”  What you need to investigate is the right kind of insurance for you.  This is when a financial education from the proper company comes in handy.  An education that teaches you all the different kinds of policies and explains how much insurance you need based upon your personal situation.  Then it offers you the option to choose the right one for you.

It is always difficult when you lose someone you love.   Your emotional struggles don’t need to be compounded by financial difficulties.   Life insurance brings the security of knowing that the people you care about will receive financial protection  when you are not there to care for them yourself.