Who needs life insurance? These days, the answer is, “Almost everyone.” That includes:
Young Adults
As you might imagine, parents of minor children are at the top of the list of those who probably need life insurance. If one “breadwinner” were to pass away, life insurance payments could make it possible for the survivor to maintain the family’s quality of life, send the children to college, and continue to set aside money for retirement and other long-term goals. But young adults don’t necessarily need children to need life insurance. For example, newlyweds might purchase life insurance so that if one were to die, the other could use the proceeds to help repay significant debts, such as a mortgage or car loan. Generally speaking, life insurance is cheaper and more easily obtained at younger ages.
Empty Nesters and Retirees
Even if your children are grown up and financially self-reliant, life insurance may still be an important part of your financial strategy. After all, a widow or widower may still need to pay off a mortgage and other debts as well as continue to plan for a comfortable retirement. Naming grandchildren or adult children as beneficiaries of your life insurance policy may also enable those family members to accomplish important goals long after you’re gone. Also, life insurance can help you accomplish a number of estate planning goals.
Business Owners
Offering life insurance as a workplace benefit can help a business owner attract and retain valuable employees. Also, naming the business as the beneficiary of a policy on a key employee can make it financially possible for the business to hire and train someone to replace that individual after his or her death. And life insurance proceeds can also make it possible for surviving partners or family members to eventually purchase a deceased owner’s share of the business.
For information on the uses and benefits of life insurance at every stage of life, please contact your registered representative.
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