why life insurance is important
Most outstanding loans are not forgiven at the time of your death. When considering your options, you may want to think about using a life insurance calculator to help you determine how much life you insurance you may need. If you don’t want to leave your family with unaffordable bills, having a life insurance policy in place is a good way to compensate. left: 0%; The information provided is for educational purposes only. This is where life insurance comes in. It’s more important than financial planning because it guarantees financial planning in advance. Here are five reasons why life insurance is important. .hero { A death benefit can help ensure your spouse is provided for in their retirement years. The Company makes no warranties with regard to the information or results obtained by its use. } Why should I get life insurance? } .hero__headline { Consult an attorney or tax advisor regarding your specific legal or tax situation. margin-left: 0%; Whether you're married with kids, or have a partner or other relatives who depend on you financially, having life insurance can be important. This type of policy is tied to a specific investment product and the policyholders receive dividend payments. } Most outstanding loans are not forgiven at the time of your death. Some life insurance providers don’t even require a physical medical exam, and can give you a quote in a matter of minutes. Laws of a specific state or laws relevant to a particular situation may affect the applicability, accuracy, or completeness of this information. Policy obligations are the sole responsibility of the issuing insurance carrier. MORE: What Does the Average Funeral Cost? Whether you have a 9-to-5, are self-employed, or own a small business, your income might cover a portion or even all of your family's daily needs. This is the primary purpose of life insurance. Western & Southern is the marketing name for a group of diversified financial services businesses composed of Western & Southern Financial Group and its seven life insurance subsidiaries. by Joe Bachmeier - Medicare Agent ... As a life insurance agent, I did the same exact planning for me, my wife and my daughter. If you have children, life insurance can help your family pay for future childcare and education expenses, especially for college. If you’re married with children, life insurance can be... 2. All insurance products are governed by the terms, conditions, limitations and exclusions set forth in the applicable insurance policy. All insurance products advertised on Coverage.com (the “Site”) are underwritten by insurance carriers that have partnered with HomeInsurance.com, LLC. HomeInsurance.com, LLC, is a licensed insurance producer resident in North Carolina with license number 1000012368, with its principal place of business at 15720 Brixham Hill Avenue, Suite 300, Charlotte, NC 28277. 4 Excellent financial security (fourth highest of 21 ratings; rating held since February 2009) If you shop around and compare policies, you should be able to find something that meets your needs and fits into your budget. Author: Neeraj Naval Published on: March 11, 2021 Published in: HNIs An entrepreneur undoubtedly spends most of their time preparing for their rewarding business meetings and elevator speeches; only a handful give equal importance to the concerned families. 1 Six out of seven of Western & Southern Financial Group’s life insurance subsidiaries maintain a rating of A+ Superior ability to meet ongoing insurance obligations (second highest of 13 ratings; rating held since June 2009). Today, a large number of people do not have life insurance. And while we set the cutoff at 75, it’s important to note some insurers are willing to sell term life policies to individuals over the age of 75, and that may increase with life expectancies. margin-left: 0%; Because this site is independent, Western & Southern Financial Group neither manages nor assumes responsibility for its content. bottom: 0%; Coverage expires at the end of the term. Estate taxes can be quite costly, especially if you have a substantial estate. “Life insurance is a contract with an insurance company that gives one or more of your named beneficiaries a payment, known as a death benefit, when you die,” explained insurance and financial expert Laura Adams. However, it may not be enough insurance, depending on the size of your family and financial situation.”, It’s also important to keep in mind that you’ll lose your coverage if you lose your job, she added. There are many kinds of insurance of which, the basic and most important is considered to be life insurance. And if you were planning to help your children pay for college (Sallie Mae found that about 44% of college costs are funded by parents), your spouse might have a hard time accomplishing that goal on their own, especially if you die before accumulating any college savings. Products and services referenced in this website are provided through multiple companies. 3 Very strong capacity to meet policyholder and contract obligations on a timely basis (third highest of 21 ratings; rating held since June 2009) … } The Lafayette Life Insurance Company is not rated by Moody’s and has a Comdex Ranking of 95 out of 100. } @media only screen and (max-width: 40em) { Planning your financial future, whether personally or for your business, involves many factors. THIRD-PARTY CONTENT PROVIDERS SHALL NOT BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, EXEMPLARY, COMPENSATORY, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES, COSTS, EXPENSES, LEGAL FEES OR LOSSES (INCLUDING LOST INCOME OR PROFITS AND OPPORTUNITY COSTS OR LOSSES CAUSED BY NEGLIGENCE) IN CONNECTION WITH ANY USE OF THEIR CONTENT, INCLUDING RATINGS. Credit ratings are statements of opinions and are not statements of fact or recommendations to purchase, hold or sell securities. It’s best to pick a policy with a sufficient death benefit that fits into your budget. Insurance riders are add-ons, which implies additional benefits that an insured can select when buying life insurance. Life insurance provides money, or what's known as a death benefit, to your chosen beneficiary after you die. Military members and their families may qualify for military life insurance through USAA. How Life Insurance Works Life insurance provides a large payment to beneficiaries when an insured person dies. In many cases, life insurance is relatively inexpensive and provides crucial protection for loved ones. Allow your dependents to maintain their standard of living. Discover how we can help you with personalized guidance and solutions tailored to your specific needs. You have clicked a link to access information on an external website, so you will be leaving, It Can Help to Financially Protect Your Family, It Can Help to Pay for Future Education Expenses, How Life Insurance Helps Protect a Mortgage. Gerber Life is not rated by the other rating agencies. You may want to purchase a business life insurance policy as well, often referred to as key person insurance. Certain types of debt don't go away when you die, which means your loved ones may have to use money from your estate or sell off other assets to cover them. If you have a spouse or dependents, you should purchase a life insurance policy. The ratings shown here are correct as of September 2019. But when you sit down with an expert who has your best interests in mind, you may find that life insurance is something you not only need, but truly want, as well — to protect your family, dependents, business and legacy. For more information, consider speaking with a financial representative. A single person with few, if any, close relations can get by on a very little life insurance or perhaps no insurance at all. .hero__foreground { This site is intended to provide a general overview of our products and services. Gerber Life Insurance is a trademark. left: 0%; As you think about your financial future and current needs, consider the benefits our various products can offer. Giving Loved Ones a Financial Future. To do this, the beneficiary of the policy could direct some of the death benefit to the funeral home, or they can pay out-of-pocket and use the death benefit as a reimbursement for these expenses. } .hero__headline { Not all products and services are available in all states. Each company has financial responsibility only for its own products and services, and is not responsible for the products and services provided by the other companies. Secure … Your spouse may have their own retirement account, but if you were the primary breadwinner, their personal nest egg may not be enough to retire comfortably. Your family could be on solid financial footing now, but what if they lost your income? It also offers a cash value component that has growth potential. ET A number of industry experts and thought leaders weigh in on why life insurance is so important. ET For many of us, life insurance never crosses our mind until we go through some kind of life-changing event. This may contain information obtained from third-parties, including ratings from credit ratings agencies such as Standard & Poor’s. If you die unexpectedly, your family could be left with the burden of your debts and without the support of your income. Life insurance has a special purpose, it is that this person donates financial security to his family from untimely death. All companies are members of Western & Southern Financial Group and are located in Cincinnati, OH with the exception of National Integrity, which is located in Greenwich, NY, and Gerber Life, which is located in White Plains, NY. “If you have the option to enroll in life insurance through a group policy at work, that can be convenient and affordable coverage. 2 Very strong financial security characteristics (fourth highest of 21 ratings; rating held since August 2018) Since you can choose your coverage level, you should make sure the death benefit is enough to cover any outstanding debts, provide for your children and spouse and pay for your burial expenses. Taking out a mortgage... 2. Increases in coverage are also subject to underwriting. Collectively, we provide you and your family with a broad range of life insurance, investments and retirement solutions. Not leveraging the benefits of a permanent life insurance policy due to its higher cost, though there are numerous benefits to this product in the long run. Understanding life insurance can help you plan for your family's long-term financial needs. Sunday | Closed If you pass away, life insurance can help to provide much needed financial support to your loved ones, who might otherwise have to shoulder the cost of your funeral, medical expenses, debt, or other bills. A life insurance policy is also helpful because … Why a life insurance policy is an important asset for entrepreneurs? Used under license from Société des Produits Nestlé S.A. and Gerber Products Company. To Add More Financial Security. 5 The Comdex Ranking is a composite of all the ratings a company has received from the major rating agencies. Western & Southern’s family of companies spans the full gamut of expertise within the financial services industry. And it starts right here, right now, since you’re about to discover why life insurance is important. Gerber Life maintains a rating of A Excellent ability to meet ongoing insurance obligations (third highest of 13 ratings; held since January 2019). The same cannot be said for persons who have family members or other types of responsibilities. Top ten reasons you need life insurance. “This coverage is critical in situations where you have dependents, such as a spouse, partner, or children, who financially depend on you. Lack of … With so many options, it can be challenging to navigate through all the decisions. transform: scale(1); Life insurance can help your loved ones pay for any debt you leave behind, including credit card debt, business debt, personal and/or educational loans and mortgage debt. Dealing With Life’s Uncertainties. It is the ultimate character product. Our site uses cookies to improve your visitor experience. The importance of life insurance increases as the number of people in a household increases. When it comes to a funeral with a viewing and burial, the national median cost comes in at $7,640. It’s not fun to talk about and it’s definitely not a process anyone enjoys. var s = document.createElement("script"), el = document.getElementsByTagName("script")[0]; s.async = true; s.src = "https://sb.scorecardresearch.com/cs/31824268/beacon.js"; If whoever inherits … Universal life insurance. “So, make sure your policy is enough to cover their foreseeable financial needs.”. Gerber Life is rated only by A.M. Best. If whoever inherits your home can’t pay the mortgage without your income, they’ll need to sell it or face foreclosure. Your death could also leave your spouse with insufficient income to afford things like childcare, even if they are gainfully employed.