Old or young, if you’ve ever wondered if a life insurance policy is right for you, it’s a good idea to look into it. Here are a few tips from the number-talking experts (source):
{5 groups that really DO need life insurance}
Although married couples and parents are among the best candidates for a life insurance policy, the single or childless shouldn’t automatically count themselves out. “The reality is most people need life insurance,” says Stephen Rothschild, chairman of the Life and Health Insurance Foundation for Education. “A simple rule of thumb is that if someone will suffer financially when you die, you should be covered by life insurance.”
{5 groups that really DO need life insurance}
Although married couples and parents are among the best candidates for a life insurance policy, the single or childless shouldn’t automatically count themselves out. “The reality is most people need life insurance,” says Stephen Rothschild, chairman of the Life and Health Insurance Foundation for Education. “A simple rule of thumb is that if someone will suffer financially when you die, you should be covered by life insurance.”
1. Empty Nesters.
- An increasing number of retirees are caring for their grandchildren, which often includes assuming complete financial responsibility.
- Your spouse could outlive you by 10 to 30 years; a policy can insure that they can maintain their standard of living.
- Life insurance offers the ability to leave money to your children and grandchildren.
- A permanent life insurance policy that builds cash value can give you extra financial security for future unexpected needs or opportunities.
2. Singles without children.
- Many singles end up taking care of elderly parents; as people live longer, this could become more and more likely.
- Life insurance can cover your funeral costs and debt obligations so your loved ones don’t get stuck with the bill.
- If you have a charity close to your heart, life insurance can help you leave it a legacy; by paying a little each month, you can donate significant dollars upon your death to a cause you are passionate about.
- If you are young and healthy, you are likely to qualify for a lower rate and lock in the premium. This approach makes sense if you anticipate marriage and family in the future and want to keep costs low during those years.
3. Small business owners.
- As a business owner, you most likely have a team of employees depending on you. If you have life insurance, you could fund a retirement plan for them. This kind of perk can help retain good workers.
- If you buy a permanent life insurance policy, you can borrow against the cash value for business expenses.
- You can join your business partners in purchasing a policy that would pay out if one of you dies. Those funds could then be used to buy out the deceased owner’s share of the business.
- You could consider a “key person” insurance policy if you have a valuable employee whose death could have a major negative impact on your business. These types of policies pay money to the company in the event of that person’s death.
4. Retirees.
- Even if your house is paid off and you and your spouse are set with retirement income, you may need life insurance to protect your heirs. A policy could provide funds for your family to pay estate taxes and other expenses associated with your death.
- Life insurance can be used as “estate equalization.” For example, if a small business owner has two sons and a daughter, he can purchase insurance to provide his daughter with an equivalent share of the value of the business that will go to the boys.
- With an insurance policy to help provide an inheritance, retirees can spend the money they have saved over their lifetime, knowing that they will be leaving a legacy in the form of a tax-free death benefit to their heirs.
5. Stay-at-home parents.
- If one parent works while the other looks after the children, often they purchase a life insurance policy based on the working spouse’s income. Don’t forget to account for the stay-at-home parent’s value.
- Life insurance could help pay for the services the stay-at-home parent currently provides, including child care, transportation, cooking, and cleaning.
At ALINK Insurance Services, we can help you with your life insurance questions, and offer a full array of products for you to choose from. Give us a call or visit http://www.alink2insurance.com/ today!
Denver Metro/Parker: 303-752-6479
Colorado Springs: 719-473-6262
Greeley: 970-475-0900
Surrounding States: 877-643-6148
Denver Metro/Parker: 303-752-6479
Colorado Springs: 719-473-6262
Greeley: 970-475-0900
Surrounding States: 877-643-6148
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