Affordable Life Insurance Protection for Your Family

Why Do We Need Life Insurance?

Are you wondering, "Why do we need life insurance?"


Many consumers and financial experts agree that life insurance can provide financial security and protection for your loved ones at a time when they need it most.


But, why do people need life insurance? How does it help us?


Life insurance can provide a secure foundation for your financial planning program.



Life insurance provides much needed financial security in several situations, including:


  • Providing Replacement Income For Your Dependents
    If people (family members, friends, etc.) depend on your income, life insurance can replace your income for them if you die prematurely. A common example of this scenario is parents with young children. This also applies to couples for which the survivor would have financial difficulties if they no longer had the income of their partner. Also, dependent adults, such as your parents, siblings or adult children who rely on you financially for support.
  • To Pay Your Final Expenses
    Life insurance can pay your funeral and burial costs, probate and other estate administration costs, debts and medical expenses not covered by health insurance.
  • Create An Inheritance For Your Heirs
    Even if you have no other assets to pass to your heirs, you can create an inheritance by buying a life insurance policy and naming them as beneficiaries.
  • Pay Federal And State Death Taxes
    Life insurance benefits can pay estate taxes so that your heirs will not have to liquidate other assets or take a smaller inheritance. Changes in the federal “death” tax rules between now and January 1, 2011 will likely lessen the impact of this tax on some people, but some states are offsetting those federal decreases with increases in their state-level “death” taxes.
  • Charitable Contributions
    By making a charity the beneficiary of your life insurance, you can make a much larger contribution than if you donated the cash equivalent of the policy’s premiums.
  • Create Savings For Your Spouse Or Family Members
    Some types of life insurance create a cash value that, if not paid out as a death benefit, can be borrowed or withdrawn on the owner’s request. Since most people make paying their life insurance policy premiums a high priority, buying a cash-value type policy can create a kind of "forced" savings plan. Furthermore, the interest credited is tax deferred (and tax exempt if the money is paid as a death claim).


There are many reasons why we need life insurance.


It’s important to consider your own personal situation. Decide why you need life insurance and who you want to provide for with your policy.


Also, consider the right amount of coverage to provide the financial security your family deserves. Remember, buy the amount of life insurance that fits your budget so you can afford to pay for your life insurance policy.


And, get a life insurance policy from a highly rated life insurance company.


Usually, a life insurance company with a financial strength rating of "A" or better from A.M. Best Company (independent financial rating service) is considered to be a financially secure company.


Term life insurance offers you the maximum amount of life insurance protection at the lowest price available.


Term life insurance is affordable for almost any budget. It has flexibility to meet your specific needs. You can choose a coverage term ranging from 10 to 30 years.


Life Insurance Quotes


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Resources:


Why Do We Need Life Insurance


Disclosure: Compensated Affiliate