Benjamin Franklin once said, “Nothing is certain except death and taxes.”
Franklin was wise beyond his years by stating that back in 1789, the quote is still true today. No one wants to talk about taxes and certainly not death but both inevitably happen. The conversation with loved ones surrounding death can become awkward & uncomfortable but it must take place.
Protection planning may not be as captivating as investing or planning to buy a new home but is a gigantic piece of your financial puzzle.
Wherever you are in life, you may not think life insurance is necessary but think again, especially if you are in any of these situations.
Are you responsible for all or the majority of your family's income? You should definitely have yourself covered. What would your family do if the inevitable happens to you unexpectedly? Exactly. Cover yourself, you'll thank me later
One who has maxed out all retirement plans
At the height of your earning career, you may find yourself saving the maximum amount the IRS allows into your employer 401(k) and personal IRA. That's a great problem to have. Looking to save even more? Looking into specially designed life insurance can help you save additional tax-free dollars for retirement and can also provide a death benefit. This should spark interest to anyone feeling that they're behind on retirement savings.
Your kids have grown up and moved away. Your working years are behind you and the golden years are ahead. Why would you need insurance you may ask? Retirees could buy life insurance for costs associated with death such as burial or estate taxes. For retirees wanting to leave an inheritance, life insurance could be a great option. It provides the freedom of spending most of your retirement assets and providing a last gift to children or grandchildren.
Stay at home parent
People often get caught up in thinking that you only need life insurance on the parent making money. In this day and age, childcare is not cheap. And especially if you have more than one child. A small insurance policy can help supplement the various lost tasks of a stay at home parent in the case they unexpectedly become deceased.
There are numerous reasons why being a business owner would have a need for life insurance. When people's livelihoods depend on your existence, it can be a tough pill to swallow if you decide against it. Insurance can be used to pay off business debts or fund a buy-sell agreement with one of your partners.
Employees with insufficient coverage
According to the Life Insurance and Market Research Association (LIMRA), seven in ten employees have life insurance offered through their employer. Among those employees, 80% participate. It's great to see that both employers and employees are valuing the importance of insurance but there's one catch. It's almost never enough. Insuring yourself to 10 times your annual salary is a quick rule of thumb when debating how much to get. There are many variables that go into this decision but making sure you have enough is just as important as having any at all.
Homeowners with a mortgage
When discussing the need for life insurance you often think of replacing monthly expenses in the event of your death. For many families, the biggest monthly expense is the mortgage payment. That pesky payment doesn't stop after you die. Obtaining protection to be able to pay off the mortgage so it doesn't force your family to move out is an easy way to wrap your mind around obtaining insurance in this predicament.
Every situation is different when it comes to protection planning. There are numerous variables that go into the decision of how much life insurance you need and if you even need it at all. Being uninsured can be a devastating event for your loved ones, especially your children.