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?
Showing posts with label life. Show all posts
Showing posts with label life. Show all posts
Monday, August 3, 2009
Wednesday, July 29, 2009
Clear Vision, Decisive Action
When is a good time to provide for your future?
When I got out of college, I wanted to see the world. My friends were on the fast track to become lawyers and doctors and teachers, and they advised me that if I followed my dream, I would get behind. Well, I went, telling them that I would take my retirement then, and if I was behind I would just have to work in my later years when they were all retired.
You know what? I was behind them, and am still working to catch up. But I wouldn't exchange my two-and-a-half years living in Hawaii, Asia, Australia, and the Middle East for anything. I grew up, and gained a global perspective. I made friends I connect with to this day. I am grateful for that early retirement.
And who knows which of us will enjoy a full retirement? One of my classmates got on a cross-country flight out of Boston on 9/11, and we never were able to see him again. Others have contracted serious diseases, even in their 30's.
Adolescents typically think that they are invincible, and take risks. It is in their wiring, and they cannot help it. But after about age 20, when our brains have finished growing, we realize full well that we are not invincible. And if we're smart, we begin to take steps to prepare for our future; we calculate the risks; we take responsibility for the little ones in our lives who now depend on us.
Why do sensible people still procrastinate and put off taking action? In the back of our minds, we know we should take action to provide for tomorrow. But we think tomorrow will never come, and that is where surprises and even tragedies can occur.
You can be smart and take action before tomorrow comes. Think about your future needs and those of your family, take steps with an insurance professional to plan for them, and then enjoy your present moments with the ones you love. You may not be able to predict exactly what the future will bring, but you'll have the peace of mind of knowing, come what may, you provided for your family.
When I got out of college, I wanted to see the world. My friends were on the fast track to become lawyers and doctors and teachers, and they advised me that if I followed my dream, I would get behind. Well, I went, telling them that I would take my retirement then, and if I was behind I would just have to work in my later years when they were all retired.
You know what? I was behind them, and am still working to catch up. But I wouldn't exchange my two-and-a-half years living in Hawaii, Asia, Australia, and the Middle East for anything. I grew up, and gained a global perspective. I made friends I connect with to this day. I am grateful for that early retirement.
And who knows which of us will enjoy a full retirement? One of my classmates got on a cross-country flight out of Boston on 9/11, and we never were able to see him again. Others have contracted serious diseases, even in their 30's.
Adolescents typically think that they are invincible, and take risks. It is in their wiring, and they cannot help it. But after about age 20, when our brains have finished growing, we realize full well that we are not invincible. And if we're smart, we begin to take steps to prepare for our future; we calculate the risks; we take responsibility for the little ones in our lives who now depend on us.
Why do sensible people still procrastinate and put off taking action? In the back of our minds, we know we should take action to provide for tomorrow. But we think tomorrow will never come, and that is where surprises and even tragedies can occur.
You can be smart and take action before tomorrow comes. Think about your future needs and those of your family, take steps with an insurance professional to plan for them, and then enjoy your present moments with the ones you love. You may not be able to predict exactly what the future will bring, but you'll have the peace of mind of knowing, come what may, you provided for your family.
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