12 reasons why you need life insurance coverage.
For most people, financial planning can be a mind-numbing topic, but it is a necessary step that you must take to successfully circumvent life’s hardest challenges.
Most of you have likely seen commercials late at night, posts from social media platforms, and some of you may have even received brochures from financial institutions recommending different types of life insurance, but is this data alone adequate enough? Can you really make informed decisions based on these literatures alone? The purpose of this article is to provide you with information you need to determine whether owning a life insurance policy is really necessary.
Understandably, most people do not want to think of their own mortality and many will even avoid this topic until it is absolutely necessary, but the fact is don't wait too long, it may be too late by that time you need it. Yes, you can be deemed uninsurable and unable to acquire a coverage when you want it.
Nevertheless, we're here to provide you with the benefits of having a policy. Getting life insurance offers more than just the ability to cover funeral expenses. So it is a necessary conversation to have with your family.
A life insurance policy with sufficient coverage and designed correctly can provide an ample income replacement. It can also be used in many planning strategies. Specific riders can be added and used in advance to help pay for medical needs or other expenses before the insured dies. Aside from the traditional idea accepted by most, a life insurance policy offers more than income replacement or funds to cover your loved one's funeral expenses. It can also be leveraged and used in many ways. It can be used as a savings vehicle, mitigate risk in the event of a severe illness, develop a foundation for legacy planning, business succession, and many other ways.
The truth is, having a life insurance is essential and is a necessary component of a sound and solid financial plan.
Here are 12 reasons why you need life insurance:
You are the breadwinner of your family.
You have dependents with special needs.
You're planning for your child's education.
You pay a mortgage or have existing debt.
You're preparing for your retirement.
Developing a tax efficient retirement plan.
You're a high net worth individual.
You plan on leaving an inheritance.
You have wealth to transfer to your heirs.
You own a business.
You're an investor.
You're looking to cover your final expenses
If you fit into any of the listed categories above, you need to heavily consider obtaining life insurance. You can schedule a free consultation with one of our team members and we can help you further evaluate your needs. Obtaining life insurance, is a necessary step and especially important when you are tasked with protecting the people that matter most.
According to LIMRA, only “57% of American adults own life insurance. Three out of ten Americans have life insurance coverage from work; and Four out of Ten have individual coverage” (LIMRA, 2019). This signifies that there are a lot of people lacking coverage, which is a scary thought. How will your family's quality of life be impacted if you're one of these people? Think of their housing needs or their future. How much more can they endure during one of life's most challenging moments?
If you already have a policy, great! But we would like to remind you that your life and financial situation is constantly evolving. With that in mind, when was the last time you reviewed your policy and future needs? Reevaluating your stratagem is absolutely necessary, your policy and plan should also reflect the same. If it's been awhile, we urge you to get your free comparative analysis and full financial work up by scheduling an appointment with one of our agents. We can make sure your needs are met and you as well as your family is getting the most out of your policy.
References
LIMRA. (2019). Facts About Life, 2019. Retrieved from: https://LIMRA.com
NYS Dept of Financial Services (2019), Life Insurance. Retrieved from: https://dfs.ny.gov/consumers/life_insurance
