Do I need life insurance?


Do I need Life Insurance?

Do I really need Life Insurance to protect my family?

Should I have life Insurance?

Why do I need life insurance?

No matter how you ask the answer is:  Maybe!

Each person and each family or business has individual needs. Some people and families really need Life Insurance, some don’t need Life Insurance at all.

Does your family need to be provided for?Do I need life insurance

The main purpose of Life Insurance is to provide for your family if you die unexpectedly, and lets face it none of us really expects it.

Look at your current and future debts.

  • Do you have credit card debt, a mortgage, car loan, student loans? How will your family make those payments?
  • Do you have savings to pay for your funeral, and burial?  Final expenses can easily be 10,000 to 20,000.  Does your family have money saved to pay for these expenses?
  • When you die your debts just don’t go away, most are passed on to your family.

Look at your financial goals.

  • If you want to pay for your children’s college, will your family be able to do that, if your income is not there?
  • If you are saving towards retirement, will your spouse be able to continue to save for retirement without your income.

Look at any other financial responsibilities.

  • Do you have a disabled child, parent, or dependent that will need to be taken care of if you are not there.
  • How will your business survive without you.  How much will it take to keep it running for your family?

Other reasons you may want life insurance

  • Do you want to leave a financial legacy as well as a personal one?
  • Do you have assets that need protecting, from taxes, lawsuits, etc..?
  • Do you want to lock in low prices and eligibility on insurance while you are young and healthy?
  • Do you want to supplement your future retirement income?
  • Do you want to accumulate wealth in a safe, hassle free, and tax advantaged way?

Who doesn’t need life insurance?

If you are financially independent. Great news, you no longer need life insurance to provide for your family.  However, you may now want to use life insurance for some of its other benefits or uses, such as asset protection, estate planning, or payment of estate taxes.

If you have sources of income that do not rely upon you personally working that would continue to provide for your family.   Royalties, lottery or contest winnings, or business partnerships, etc…

If you have no family dependent upon you for support, and don’t care who ends up with your debts.

If you can afford to self-insure, I always recommend that you do.  Life insurance like all insurance is a way of sharing the risks with many others.  Many people must not need it or use it to pay for the few that do.

A good article from Forbes on “When you don’t need life insurance”.

How will life insurance help me?

When you die, there is no way to replace you, but life Insurance provides way to replace the income you would have earned.

Your family will feel better, knowing that you will be taking care of them, even if you’re no longer there.

Simply, peace of mind, yours, and theirs, knowing you are doing what you can to provide for your family.

I decided I need life insurance.  What do I do now?

Decide how much life insurance you need.  This will change over time, so review your needs every year.

Decide if term,  permanent, or a mix of life insurance policies are best for your current situation.

If you just need term insurance, you can get online quotes here.

if you want a mix or permanent insurance I recommend finding an insurance agent you feel comfortable with and go talk with them.

If you don’t have and insurance agent you can trust let me know and I can recommend someone for you.

 

Don’t just take my word for it.

Other sources of information answering the question:  Do I need life insurance?

Who needs life insurance?

Do I need life insurance?

How Life Insurance Works

 


About Phil

When I was selling Insurance, I found there was a lot of confusing and misguided information on the internet. I would spend a lot of time educating my clients on how insurance works, the correct ways to use it, not buying more or less than they need, etc... Now that I am living in Belize and marketing full time on the internet. I felt I should put some simple but accurate information on the internet to help people decide what is right for them.

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