Are you considering your options for how to best protect your family or your legacy after you pass away but aren’t fully convinced that life insurance is worth your time or your money? The fact is, there are many different people at various stages of their lives who can benefit from life insurance – and you can too!
Couples
In long-term relationships, partners should look after one another – and, for some, that’s what makes it all worth it – but what would happen if one of you were to pass away?
Having life insurance coverage in place for both of you could help the surviving partner maintain the same standard of living after the other dies. Whether you’re recently married or several decades into your partnership, you can rest assured that your loved one will be taken care of.
Mortgage Holders
Did you know that if a homeowner dies before their mortgage is paid off, the surviving family members would be responsible for clearing the remaining debt? And, what’s worse, if they are unable to afford the payments, they could be forced out of their home while they’re still grieving.
With life insurance coverage in place, both your family and your lender would be protected from the negative financial impact of your death.
In fact, most lenders require you to have some form of life insurance coverage before approving your application for a loan because they need the guarantee that the mortgage will be repaid – even in the event of your death.
Parents with Young Children
The birth of a child can be a joyous occasion and the beginning of a wonderful new chapter in your life. However, along with the joy and elation comes huge responsibility as the little person will be financially dependent on you for the next 18 years, or more.
But what would happen if the worst were to occur while they are still young? Life insurance could provide a large payout to help keep the plans you have for your child(ren)’s future intact.
It’s important to note that parents looking to cover their child’s college education under these unfortunate circumstances should also calculate the value of that expense when deciding on the amount of coverage to purchase.
Business Owners and Partners
Every businessperson should have a contingency plan in place in the event that a business owner or co-owner were to pass away prematurely. Part of that plan should include life insurance, which would protect both their personal and their business interests.
In this instance, a payout from the life insurance policy could provide the surviving business partner(s) with the capital needed to help them manage the company operations until a replacement can be found for the deceased partner, or until the business can be sold.
These funds could also be used to purchase the remaining stock or business interest from the estate or surviving family of the deceased, to ensure business continuity for their clients.
As illustrated above, there are certain scenarios where having life insurance could be fundamental to your family’s well-being. But, interestingly, there are also some scenarios where it may no longer be needed.
With Term Life Insurance, for example, there may be a time when having it no longer makes sense. Whole Life Insurance, on the other hand, can accumulate more value for you over time – and if you keep up with your premium payments, you will never outlive your coverage.
As you can see, there are many good reasons to purchase life insurance. Although it’s not a necessity for everyone, it’s important to review your financial situation, along with your future aspirations, to determine if investing in life insurance is best for you and your family.
To find out more about how you and your family can benefit from life insurance, contact Damir Armstrong, Life Sales Agent at Freisenbruch-Meyer, via email at darmstrong@fmgroup.bm or give him a call at 294-4616.
