Who Needs Life Insurance?
Life insurance is designed to protect your family and other people who may depend on you for financial support. If you die and lose your income, the people that are dependent on your financial support will lose that income, so life insurance can help cover some or all of that loss depending on the policy you choose. But there are instances where life insurance can be beneficial even if you have no dependents, such as your desire to cover your own funeral expenses. Here are some guidelines to help you decide if life insurance is the right choice for you: 1. Children: Children do not need life insurance. Yes, there have been cases where life insurance for one’s child has been a blessing, but in the majority of cases, children do not need life insurance since no one depends on income from them. Learn more at Don’t Buy Insurance You Don’t Need 2. Beginning Families: Life insurance should be purchased if you are considering starting a family. Y
When it comes to preparing for the financial welfare of loved ones, life insurance is an excellent option. Unfortunately, there are people who feel that life insurance is not of any worth, given their individual circumstances. Here are some examples of how life insurance can add an element of financial stability to just about every situation. The purpose of insurance in general is to provide some sort of relief from financial burdens in the event of a major life change that impacts the individual or a group of individuals. With life insurance, that focus is on making sure that any final expenses associated with the deceased are settled quickly, without dipping into other financial resources. One of the more common misconceptions among young people is that life insurance is for old people who are more likely to die a natural death in a few years. The reasoning is that there is plenty of time to secure life insurance later in life. Unfortunately, that is not always the case. Diseases, ac
People with responsibility for others You’ll do anything for them. Having life insurance means that whatever the future brings, you will still be able to provide for those you love. The money from your life insurance policy can be used by your dependents to help manage: • Living expenses • Mortgage payments • Outstanding loans or credit card payments • Funeral expenses • Your children’s education • Other debts and financial expenses People without dependents Life insurance can also be a valuable asset for those with no dependants, whether you are single or have a partner. A life insurance policy can be used to: • Take care of any expenses or unpaid bills you leave behind • Leave a gift to a loved one • Leave a gift to a favourite charity or cause People with estates to protect You have worked hard your whole life building your legacy. Life insurance can help protect the value of your estate, by helping to pay the taxes that are due upon death. This can help ensure as much of your estat
People with responsibility for others If you have a spouse, a parent, children or grandchildren who depend on you for support, your life insurance policy may be vital to their financial security. Besides offsetting the loss of your income, it can be used to cover your funeral and other expenses (i.e. mortgage, loans, credit card, etc.) that may otherwise become their responsibility. People without family ties Even if you re single, or you and your partner work but have no children, life insurance can play a key role in your financial planning. A life insurance policy is an efficient and cost-effective way to cover unpaid expenses or bills left behind (i.e. legal fees, taxes, medical expenses, funeral costs, mortgage, car loan, etc.). It can also be used as a gift to a loved one or favourite charity. People with estates to protect Many people believe their need for life insurance decreases as they get older and more financially independent. However, estate values rise in the course of a
When you’re planning for the unexpected, life insurance immediately comes to mind. At death, life insurance generates a large payout called the death benefit. Survivors can use the funds to pay for immediate expenses, such as covering funeral and burial costs, paying off a mortgage, or financing a child’s education. The death benefit is often invested, too, to provide for the survivors’ ongoing support. Yet life insurance isn’t for everyone.
