Life insurance can be vital to providing for your loved ones.
You are going to die.
You do not know when.
It could be within the year.
It could be years from now.
You may leave behind dependents.
You will certainly leave behind burial and funeral expenses.
How will you pay for these expenses and still provide financial support to your loved ones?
According to a recent Benzinga article titled “Life Insurance Costs and Payouts at Different Ages,” life insurance is a good option.
What is life insurance?
You agree to pay premiums and, in exchange, your beneficiaries will receive a lump sum upon your death from the insurance company.
Do you have options?
There are basically two kinds of life insurance - term and whole life.
What are the differences?
Term life insurance provides coverage through a certain period.
This is useful for replacing your income if you pass away during working years.
It can allow for your family members to still make day-to-day ends meet, let alone help meet financial goals like paying for college even if you are not there to bring in a paycheck.
Whole life will not expire, as long as you pay the premiums.
With whole life you will be covered no matter when you die.
These payments are fixed and build a cash value.
What does this mean?
The value is much like a savings account and will accumulate in value over time.
Whole life plans are often used as estate planning tools to provide "liquidity" and are used as long-term income replacement.
In other words, it will last longer than the years you would be employed.
You may even be able to borrow against these policies while you are alive.
How much will you pay?
There are a number of contributing factors.
These include your age, your lifestyle, and your health.
By purchasing life insurance you will be helping provide for your family even when you are gone and also will help relieve the financial stress of your funeral or any other bills you leave behind.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.
Reference: Benzinga (April 2018) “Life Insurance Costs and Payouts at Different Ages”