Reasons why you should have Life Insurance
Many financial experts consider life insurance to be the cornerstone of sound financial planning. Life insurance can play a vital role at any stage of a person’s life, even in retirement. We, at Senior Health Specialists, can help you make smart choices when buying life insurance – how much to buy, which type of product to buy, and which one of the hundreds of Life insurance companies to choose.
Here are just a few of the situations in which life insurance may be a valuable option.
Replace income for dependents
If people depend on your income, life insurance can replace that income for them if you die. The most commonly recognized case of this is parents with young children. However, it can also apply to couples in which the survivor would be financially stricken by the income lost through the death of a partner, and to dependent adults, such as parents, siblings or adult children who continue to rely on you financially. Insurance to replace your income can be especially useful if the government- or employer-sponsored benefits of your surviving spouse or domestic partner will be reduced after your death.
Pay final expenses
Life insurance can pay your funeral and burial costs, probate and other estate administration costs, debts and medical expenses not covered by health insurance.
Create an inheritance for your heirs
Even if you have no other assets to pass to your heirs, you can create an inheritance by buying a life insurance policy and naming them as beneficiaries.
Pay federal “death” taxes and state “death” taxes
Life insurance benefits can pay estate taxes so that your heirs will not have to liquidate other assets or take a smaller inheritance. Changes in the federal “death” tax rules between now and January 1, 2011 will likely lessen the impact of this tax on some people, but some states are offsetting those federal decreases with increases in their state-level “death” taxes.
Make significant charitable contributions
By making a charity the beneficiary of your life insurance, you can make a much larger contribution than if you donated the cash equivalent of the policy’s premiums.
Create a source of savings
Some types of life insurance create a cash value that, if not paid out as a death benefit, can be borrowed or withdrawn on the owner’s request. Since most people make paying their life insurance policy premiums a high priority, buying a cash-value type policy can create a kind of “forced” savings plan. Furthermore, the interest credited is tax deferred (and tax exempt if the money is paid as a death claim).
Life Insurance made simple
If we can assist you with any of these ideas or if you have other uses for life insurance you would like to discuss please contact us. We would be more than happy to discuss your situation and provide quotes for you. Of course all of this would be provided to you free of charge with no obligation to buy.
Here is a list of just a few of the life insurance companies we represent.
Motorist Life
AIG American General
Banner Life
Genworth Life and Annuity
Lincoln Benefit
North American
Protective Life
Symetra Life
United of Omaha
West Coast Life
Shenandoah Life