Why Do I Need Life Insurance?
Life Insurance is an integral part of financial planning. There are different types of life insurance, such as Term and Whole Life products, and different strategies on how to use Life Insurance in a financial plan. One of the main purposes of Life Insurance is to provide peace of mind and financial security for an insured and an insured’s loved ones.
The insured receives peace of mind knowing that his or her loved ones will be financially taken care of during the time period when they have experienced deep emotional loss. The insured’s loved ones receive peace of mind knowing that during their time of grief their financial needs are met and that financial stress won’t cause major changes to their lifestyle.
How do we know? Our clients have experience this first hand.
Here’s what a customer recently wrote to us:
“Life insurance is something that everyone needs to protect their family from the financial burden of an untimely death. My late husband was the sole provider in our family and I was a stay at home Mom to our three children. When he died suddenly from a massive heart attack, my entire world fell apart. I was suddenly thrust into no longer having the emotional, physical and financial support of my life partner. There were immediate expenses racking up from the funeral home and catering for his celebration of life. He was a young man that influenced a lot of people. Honoring him with his 300+ family and friends was important to me, but of course a very expensive event. Then there was the confusion and stress of managing household expenses. My mind went into overdrive trying to figure out how I was going to support my children. Would we lose our home? How quickly did I need to go back to work? Would my children be able to afford college? He had a small policy provided by his employer, but how far would that stretch? All these questions were answered when I learned that my husband had taken out a second life insurance policy. It didn’t take away the pain, but it bought me time to grieve and be there to support my children through their pain as well. I will always be grateful for the gift that he planned for in case he couldn’t be here to protect us.”
We never want a customer to go through losing a loved one, but if they do, we want to be sure they are taken care of.
There are many thoughts on life insurance, but one basic principle is for an insured to carry at least ten times their annual income.
There are more in-depth ways to measure life insurance needs, but this is a good start for those who do not currently have life insurance in place. It is also important to make sure that even if a person does not have income, their value is considered. For example, even though there is not a tangible income, a homemaker carries a lot of value in the tasks, services, and security that they provide in the home. One should consider the daily tasks that a homemaker performs such as daycare, cleaning, cooking, and providing transportation, to name a few. In an article from Business Insider, https://www.businessinsider.com/value-of-stay-at-home-moms-2013-5, the author reviewed the 10 most time consuming tasks listed by more than 6,000 mothers and according to these jobs on Salary.com, it is estimated that it would cost over $113,000 to replace a homemaker.
What Does Life Insurance Cover?
In the event of the death of an insured, Life Insurance provides the death benefit income tax free to the beneficiaries listed on the policy. It helps to replace or supplement income. It can help to pay off debts and help with any final expenses or funeral costs. It can be used to transfer wealth or donate to a charitable cause. Life Insurance can also be used in business to cover a key person in a business, and in a buy-sell agreement.
How Do I Get a Quote?
Call The Insurance Team at 480-626-1860 or email us at Info@theinsteam.com and a member of our team will be happy to shop rates with the many life insurance carriers that we have access to in order to find you the most affordable Life Insurance policy for the best coverages that fit your individual needs. You can also visit us on Facebook at https://www.facebook.com/InsuranceTeam.
Carriers that The Insurance Team represents for Life Insurance:
Banner Life Insurance, AIG, Allianz, New York Life, Prudential Financial, Pacific Life, Lincoln Financial, and many more.