• Top Reasons for Life insurance

  • FINANCIAL MISTAKE: Are you overlooking the importance of life insurance in your retirement planning? 

    Top Reasons for Life Insurance

    1. Paying Off a Mortgage or other Debt. Retirement should usually not include a mortgage. Term insurance is
        often purchased to pay off a house for a spouse or a child beneficiary.
    2. Replacing a Spousal Social Security Check. When two spouses are collecting social security and one dies, the
        lowest check is lost. This is usually a very significant reduction in income for the survivor. Permanent and term
        insurance may be used in conjunction with each other to cover this risk.
    3. Replacing a Spousal Pension. Some pension benefits leave nothing or cut benefits in half for the surviving
        spouse. A lump sum life insurance benefit can be used to replace a pension benefit, allowing the retiree to
        take the higher pension benefit and still take care of their spouse. Permanent and term insurance are often
        used in conjunction with each other to cover this risk.
    4. Replacing the Lost Income of a Working Spouse. When the death of one spouse occurs before retirement,
        families can be financially affected forever. A thriving family can go bankrupt. Retirement savings plans can
        be shattered if the decedent was expected to work longer. Life insurance can help insure a continued standard
        of living. Riders exist to keep insurance in force if the insured becomes involuntarily unemployed.
    5. To Help Raise Children. A lot of money is required to raise children through the college years. Term policies
        with premiums guaranteed not to increase through a certain year can ensure that a spouse or other guardian
        can continue to afford to support their children.
    6. To Leave a Family Legacy. Some people have a desire to leave a legacy to children, family members,
        or close friends. The right kind of permanent insurance can guarantee that your beneficiaries will
        receive a benefit.
    7. Final Expenses. Some people need only small amounts of insurance to pay for their funeral or incidental
        debts. Permanent insurance is usually more appropriate for this risk as you might outlive term coverage
        and then have nothing to cover the final expenses.
    8. To Insure a Business Partner or Key Company Employee. Life insurance can be used to reimburse
        lost income when a partner or key employee passes away. Another use is when business partners buy
        policies on each other for the purpose of allowing the surviving partner to buy out the deceased partner's
        portion of the business in the event of death.
    9. For Charity or Annual Gifting. Gifting through life insurance can exponentially increase the amount of one's gift.
        On a guaranteed basis, you can give a lot for the premium outlay. Life policies can be funded with a lump sum
        gift or over a period of time. If the beneficiary is a charity, there may be tax deductions for the giver*.
    10. Paying Estate Taxes. Although the Federal estate & gift tax exclusions have drastically increased
        ($5.34 million in 2014), estate tax rates are still high at 40%. Some with land or assets may be in
        jeopardy, and their assets may not be particularly liquid. Life insurance is often used to provide cash
        to pay estate taxes without "selling the farm" or other family assets. 

    Find out how much life insurance you need for your situation! 

    Click Here for a No Obligation Life Insurance Quote or Policy Review 

    Or call us at 901-754-2040 

    *We are not tax advisors and do not give tax advice.

    See our Professional Disclaimer