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“Life insurance provides financial support to surviving dependents or other beneficiaries after the death of an insured. Here are some examples of people who may need life insurance:
- Parents with minor children – If a parent dies, the loss of their income or caregiving skills could create a financial hardship. Life insurance can make sure the kids will have the financial resources they need until they can support themselves.
- Parents with special-needs adult children – For children who require lifelong care and will never be self-sufficient, life insurance can make sure their needs will be met after their parents pass away. The death benefit can be used to fund a special needs trust that a fiduciary will manage for the adult child’s benefit.
- Adults who own property together – Married or not, if the death of one adult would mean that the other could no longer afford loan payments, upkeep, and taxes on the property, life insurance may be a good idea. An example would be an engaged couple who took out a joint mortgage to buy their first house.
- Elderly parents who want to leave money to adult children who provide their care – Many adult children sacrifice by taking time off work to care for an elderly parent who needs help. This help may also include direct financial support. Life insurance can help reimburse the adult child’s costs when the parent passes away.
- Young adults whose parents incurred private student loan debt or cosigned a loan for them – Young adults without dependents rarely need life insurance, but if a parent will be on the hook for a child’s debt after their death, the child may want to carry enough life insurance to pay off that debt.
- Young adults who want to lock in low rates – The younger and healthier you are, the lower your insurance premiums. A 20-something adult might buy a policy even without having dependents if there is an expectation to have them in the future.
- Wealthy families who expect to owe estate taxes – Life insurance can provide funds to cover the taxes and keep the full value of the estate intact.
- Families who can’t afford afford burial and funeral expenses – A small life insurance policy can provide funds to honor a loved one’s passing.
- Businesses with key employees – If the death of a key employee, such as a CEO, would create a severe financial hardship for a firm, that firm may have an insurable interest that will allow it to purchase a life insurance policy on that employee.
- Married pensioners – Instead of choosing between a pension payout that offers a spousal benefit and one that doesn’t, pensioners can choose to accept their full pension and use some of the money to buy life insurance to benefit their spouse. This strategy is called pension maximization.” – Investopedia.com
What is life insurance?
“Life insurance is a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money in exchange for a premium, upon the death of an insured person.”
What would I need in order to purchase life insurance?
“Something to protect. In addition to providing income to cover everyday living expenses, your family needs insurance to cover any outstanding debts, like the mortgage, credit cards and car loans. Other expenses include funeral and burial costs that can easily run into the tens of thousands of dollars.”
Is this an investment option that people take seriously?
“Certainly, in fact we have the best investment options in our region. Our investment policies are a series of benefits which encompass a portfolio of 3 categories; short-term, medium-term and long-term. Which is powered by compound interest and as we all know, compound interest is king.”
What are the pros and cons of having life insurance?
“First and foremost, life insurance should replace your income if something happens to you. The most important consideration when it comes to life insurance is what the world would look like if you weren’t in it.
Chances are, your thoughts will immediately go to your loved ones. If you’re no longer bringing in money, how will this affect your survivors? Life insurance is designed primarily to replace this income, allowing your family to stay in your home and continue to pay the bills. Your need for life insurance increases if you own a home or have children.
Pros: It creates a secure environment that stimulates financial growth and protection.
Cons: To be entangled in an unforeseen event without any coverage will be devastating to the family and financial life.”
How much money would I need to save in order to have this?
“It’s all about adequately managing your finances with a structured budget plan reviewed by your insurance advisor.”
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Telephone: 1 (876) 593-9952
Blessings in abundance!