Who Needs Life Insurance?

If someone depends on you financially, chances are you need life insurance. Life insurance provides cash to your family and loved ones after your death. This cash (known as the death benefit) replaces your income and can help your family maintain their lifestyle by providing financial needs like daily living expenses, mortgage payments and college savings. What’s more, the life insurance benefit is federal income tax free.

Not sure if you need life insurance?

  • To answer that question you need to answer this question… What would happen to your family if you died tomorrow? How would your loved ones fare financially?
  • Would they have the money to pay for your final expenses (e.g., funeral costs, medical bills, taxes, debts, lawyers fees, etc.)? Would they be able to meet ongoing living expenses like the rent or mortgage, food, clothing, transportation costs, healthcare, etc? What about long-range financial goals? Without your contribution to the household, would your surviving spouse be able to save enough money to put the kids through college or retire comfortably?
  • The truth is, it’s always a struggle when you lose someone you love. But your emotional struggles don’t need to be compounded by financial difficulties. Life insurance helps make sure that the people you care about will be provided for financially, even if you’re not there to care for them yourself.
  • Life Insurance is the foundation of a strong financial plan. So whether you’re young or old, married or single, have children or don’t, take a moment to consider how life insurance might fit into your financial plans. We will show you the cost and ratings of the companies we work with to get you the best rate.

Check out Life Insurance Tips, Checkup Triggers and Benefits, and Types of Life Insurance

The classic and best reason for an individual to buy life insurance is for protection against dying too soon. The person buying life insurance should be primarily concerned with seeing that his or her survivors do not face a financial handicap. There may be other reasons that apply including purchasing Life Insurance to pay estate taxes.
The cost and availability of life insurance depend on factors such as age, health, and the type and amount of insurance purchased. Before implementing a strategy involving life insurance, it would be prudent to make sure that you are insurable.
As with most financial decisions, there are associated expenses with the purchase of life insurance. Policies commonly have mortality and expense charges. In addition, if a policy is surrendered prematurely there may be surrender charges and income tax implications.

Review your existing life insurance policies and investment accounts if you have experienced any of the following:

  • Marriage
  • Loss of a Spouse
  • Marriage or divorce of one of your heirs
  • Birth or Adoption of a child or grandchild
  • Major Career Change
  • Retirement

The opportunity to take advantage of newer and more cost-effective life insurance policies. Ensure appropriate and accurate beneficiary designations. Ensure your policy doesn’t lapse because of a drastic change in interest rates.

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Securities offered through First Allied Securities, Inc. Member FINRA/SIPC. Advisory services offered through First Allied Advisory Services Inc., a registered investment adviser.

This site is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security which may be referenced herein. We suggest that you consult with your financial or tax advisor with regard to your individual situation.
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