1. Current and future expenses as well as outstanding debts:
From credit cards, mortgage, your children’s secondary education to car payments. It’s planning not just for today but how your family will manage for tomorrow. Consider the time frame for these expenditures. By calculating the specified time period that this coverage will be needed for, can help determine if it will be a Permanent or Term plan. And if Term; the duration of it to ensure these expenses will be covered.
2. Covering your and/or your spouse’s income:
With such a difficult time and disruption following your absence, will your family be able to continue with as much normalcy as feasible? Being able to meet all financial obligations will help in having their home life be as stable as possible.
3. Leaving to your favorite cause:
Perhaps you have no dependents or debts, is there a charity that is close to your heart or to leave as a legacy? And remember, life insurance claims are tax-free.
4. Covering Your Funeral expenses:
While we might not want to think about it, it will ultimately happen to all of us. We live and die and most of us will want to have a funeral. The cost of a funeral can range from $5,000 to over $15,000. Instead of having a family member cover this expense (and, it may put a strain on their own finances), a life insurance plan can cover your funeral costs. This would lessen any worry about those expenses and help make that difficult time for loved ones a little easier. It is considerate and generous to plan ahead.
5. Cover estate taxes:
Your life insurance policy can be used to cover estate taxes. This can help lessen or eliminate the burden on family members. In this case – as well as leaving a legacy or to a charity – a Permanent life insurance plan would be the route to go vs. Term.
We have no idea what tomorrow may bring. If any of the above five resonate with you, having a life insurance plan whether Permanent life insurance or Term life insurance is a most wise and caring decision. This will give tremendous peace of mind for you, and for your family.