Protect your family in case of premature death
Life insurance is the only type of insurance policy that you can use to create a lifestyle for your heirs after you pass on. This makes it an extremely individual product. Instead of deciding what the value of an object is and then insuring said object for that amount, with life insurance you must decide how powerfully you want your death benefit to affect the lives of your beneficiaries and assign a value to that power and legacy creation. If you're the breadwinner in the family and your death would cause certain financial doom to your family, then buying affordable term life insurance is a must. The cost of these policies is usually extremely low if you're in good health.
What do your beneficiaries need with the money if you were to die?
The first step toward deciding how much life insurance you need is to really understand what your beneficiaries can use the death benefit for. These uses include:
- Paying off debt
- Saving for retirement
- Supplementing an income
- Replacing your income
- College tuition
- Starting a business
When you are deciding how much life insurance to take out, write down all the things you want your death benefit to be used for and then estimate the amount of money that goal or use would take.
For instance, let’s say you want your beneficiaries to be able to use your death benefit to pay off your home and car, replace your salary for 3 years and pay the college tuition expenses for your child. Write down each of these uses and the amount of money each requires. The final amount that you get is a good reflection of the actual death benefit you probably want to purchase.
Not everyone has cash ready to help in case of an emergency. Your premature death would certainly be an emergency for your family. Life insurance provides for instant liquidity and is in most cases exempt from personal income tax. Maybe you have your assets in real estate. What would your family have to do in order to get the cash out of the real estate? They may have to sell it and real estate can take a very long time to sell. It could also be a horrible time to sell or what many call a buyers market. Providing the cash needed using term insurance prevents your family from having to have what we call a "fire sale".
Nobody wants to die or expects to die prematurely. This is usually far beyond our control. But term life insurance is a way to protect your family from the stress of financial disaster if this happens. The cost of a term insurance policy is extremely reasonable. Call me at 843-556-6232 and I can meet with you to discuss these issues or simply to provide quotes. Whatever is best for you.
1052 Gardner Road