4 Reasons, Everyone Should Have Life Insurance!

With a large majority of Americans believing that it’s important to provide for their families after they are gone, why are so many Americans dropping or reducing their life insurance coverage. Especially, when experts say that most people with life insurance may not have enough coverage for their families to avoid financial hardship if they were to die unexpectedly.

Let’s say your children are grown and/or you have substantial assets. Should life insurance still play a role in your overall financial picture?

The primary reason to own life insurance is to cover expenses that would otherwise fall onto dependents that may not have the means to pay them. This might paint a picture in your mind of a young widow who needs money to raise small children. But don’t let this traditional definition blind you to the bigger picture.

Here are a few reasons to consider keeping or getting life insurance….

Retirement Income
A spouse who is suddenly faced with a smaller income may be tempted to cut back on retirement contributions. Proceeds from a life insurance policy can help ensure that a surviving spouse has money for retirement.

Education (Children and Grandchildren)
One consequence of losing an income earner is the possibility that their children may not be able to afford college. Life insurance can also be helpful in cases where grandparents had hoped to help pay college costs.

Estate Taxes
Given the uncertainty surrounding the future of the federal estate tax, we expect that some form of taxation will be in place. Life insurance proceeds can be used to help pay any estate taxes and probate costs.

A Final Gift
Life insurance proceeds represent a great opportunity to make a significant charitable contribution or leave an inheritance for loved ones.

As with most financial decisions, there are expenses associated with the purchase of life insurance. Policies commonly have mortality and expense charges. In addition, if a policy is surrendered prematurely, there may be surrender charges and income tax implications.

Before you take any specific action, be sure to consult with your tax professional or give us a call!