In the last blog post we looked at the need for advanced education in today’s society. It’s a goal that many parents and grandparents have for the young people in their lives. Savings plans can help make that goal a reality, but what if you’re not in the picture to save and help toward current and future financial goals and obligations? Life insurance can ease your concerns and help you and your family face the future with more confidence.
So Who Needs Life Insurance and Why?
If you are married, even if you have no children, it’s wise to evaluate your current financial obligations. Would your spouse be left with a problem if you were to pass away tomorrow? Think about all of your debts compared to your spouse’s income. Would there be enough to cover every obligation? If you are planning on having children, you will want to buy life insurance soon. Some companies won’t issue policies on an expecting mom. The younger either husband or wife is when applying for a life policy, very likely, the lower the insurance premiums.
If you are married and have children and you die suddenly, could your family continue their current standard of living on a single income? Most families rely on two incomes to cover current and future financial obligations and goals. Life insurance can help make sure that your plans for the future won’t die with you. Your goal of college for your children could still become a reality. If you are a single parent, your children rely on you even more to safeguard their financial future.
If you are a stay at home parent, you provide your family with valuable services. Those services would carry a hefty replacement value. Some surveys have estimated that the value of stay at home parent’s activities could be as high as $40,000 per year. Could your spouse afford to pay someone for childcare, transportation, cleaning, cooking and more?
If you have grown children or are retired you will want to look at the income provided through Social Security and any retirement savings or plans. If you died today, would your financial plan, without life insurance enable your spouse to maintain the lifestyle you envision? If you’re retired and you pass away, estate taxes could eat up as much as 45% of your estate. Life insurance proceeds are payable right away and are generally tax free if properly structured. The proceeds could help heirs cover estate taxes and final expenses without having to hastily sell off assets.
Life insurance for children can help defray final expenses, but it can also be a way for children to qualify for permanent insurance as an adult without proving insurability. One insurance plan in this category is the “Just for Kids” plan from Gleaner Life Insurance Society. The $10,000 policy is available for children ages 1 month through age 17 for a single premium of $125. It remains in force until age 25 with several opportunities along the way to convert to up to $50,000 in permanent insurance without proof on insurability.
The future holds a great deal of uncertainty. We plan and hope and dream. We look for ways to weave security into this insecure life we live. Life insurance can be a helpful tool to provide greater confidence in the reliability of our aspirations.
Life Insurance Calculations
Life insurance is a helpful tool to protect families, spouses, finances and estates. It works best when the life insurance is the right type of policy, for the appropriate length of time and the correct amount. There are several factors that go into determining which choice is best. Each situation is different. For more information or to learn about life insurance options for you and your loved ones, please contact Mary Lou at boulevardfinancial@comcast.net.
