Why do I need life insurance? Here are 6 fundamental reasons…
Since life insurance is something many of us put off for another day, let’s think about reasons why we should act now. And ask yourself, how much is it about me?
Reason #1: to pay for final expenses. Even if you are single, your passing will put a burden on others if you don’t have any life insurance. Do you know how expensive those costs can be now?
Reason #2: to replace your income. If you have a spouse, and especially if you have children too, your life insurance can take care of them for some time after you pass on.
Reason #3: Create an inheritance. Even if this is your only asset you leave, life insurance is a leveraged way to leave an inheritance tax-free to whoever you name as beneficiaries.
Reason #4: Pay your estate (“death”) taxes. By paying these taxes with insurance, your heirs won’t have to liquidate assets to pay the taxes on your estate.
Reason #5: Make a large charitable contribution. Here again, the leverage of life insurance comes in. If you choose a charity as the beneficiary of your policy, you can leave them a much larger contribution than the amount you pay in premiums.
Reason #6: Savings. Permanent life insurance builds up a cash value, which you can access, tax free, by taking a loan on the policy. Plus, the interest credited to the policy as it grows is tax deferred.
6 key reasons to act today. And what do you think? Who is your life insurance really for?