As the life insurance industry web site lifeiline.org says: If someone depends on you financially, chances are you need life insurance." It's simple. Having life insurance is the way to make sure your loved ones will have the money to replace the income that goes away because you're not there to earn it. The insurance benefit is there (if you get enough) to replace your income so that your family's expenses, lifestyle and future lifestyle including retirement and lifetime financial goals. One of the interesting attributes of life insurance is that it is income tax free to the beneficiaries. When you lose someone you love, it will be a difficult time emotionally but that should not be compounded by financial difficulties. If you're young, old, married or single you may need life insurance. When you're young with high obligations and younger children you may need lots of life insurance. Term life insurance is often an alternative that can work at that time in life. Married In today's world, most families use two incomes to keep up with expenses and hopefully create some savings. The question is if you passed away or your spouse died, could you maintain your current way of life? There's an interesting saying: Life insurance makes sure that your plans for the future don't die when you do." Single Parent A single parent is both parents built into one. The life-line.org site states that: Nearly four in ten single parents have no life insurance whatsoever and many with coverage say they need more." Empty Nesters Your children are out of the house and your mortgage is paid off, a need for life insurance? Maybe. Your spouse would still have expenses and may outlive you by many years. Living expenses are still there and with inflation could grow dramatically. The question to ask yourself is: Would your cash flow, if you didn't have life insurance, allow your spouse to continue his or her financial way of life? Also, would there be enough to pass on to children or grandchildren? Paying estate taxes You work your entire life, you invest well, you save, you build a business and of course you pay substantial income taxes along the way. Then if you're successful, when you pass away the government come in again and taxes your net worth it's called estate taxes. We can't change that but we can plan to have those paid in an efficient way. Life insurance purchased, usually using what's called an Irrevocable Life Insurance Trust, can create tax free money that can be used to pay these estate taxes. There is a special kind of life insurance often used for this kind of situation called Survivorship Life Insurance. If you fit into one of these categories, which most people do, you should consider life insurance. This article was published using Article Submitter
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