Ensure Blog

4 Reasons You Need Life Insurance

4 reasons for life insuranceImagine this: You come home, it was a long, grueling day at work and find that your son / daughter has prepared dinner and made you a card that reads “I love you.” Suddenly, your day isn’t so bad after all. Sometimes it’s just that easy to make a bad situation better.

Now Imagine that an unforseen event has happen and you are no longer able to provide for your family but you made an inexpensive decision to obtain life insurance and now all of their financial needs are covered. The worst day in thier life has not be compounded with the worry and uncertainty of financial needs. It’s really that easy.

Who are the people you love? Your children, mother, significant other, husband, sister? These are the people life insurance was made for. The ones who make you smile, the ones who support you—and the ones whose future you want to protect.

Whether you choose a permanent life policy or term, life insurance can:

1. Provide income: Life insurance can’t replace you, but it can replace some or all of your income if you die. It can cover the cost of funeral expenses, pay off debts, as well as help with day-to-day expenses, like food, clothing, and housing. For the longer term, life insurance can help finance college tuition or ensure retirement dreams are realized.

2. Help with household needs: Think of all the work a stay-at-home parent provides. It’s invaluable, and insuring them is, too. Life insurance can pay for vital household services like childcare, transportation, and household chores.

3. Supply benefits you can use during your lifetime: If you choose whole life insurance, the cash value in your policy can help pay for life’s events, such as buying a home, a wedding, or educational expenses. As you pay the premiums of your whole life policy, the cash value builds and you can access those funds. Some important things to keep in mind: the cash value in a whole life insurance policy is accessed through policy loans, which accrue interest at the current rate. Loans will decrease the death benefit and cash value.

4. Leave a lasting legacy: Life insurance can create a financial legacy—funding the future and fueling dreams. From a favorite nonprofit to starting a scholarship program—the legacy you leave behind is all up to you.

Key tips for first-time life insurance buyers.

Looking to buy life insurance for the first time? If so, you’re probably asking yourself questions such as “How much do I need?”, “What kind of policy is best?” and “Which company should I buy from?” There’s no question buying life insurance for the first time, like any other new experience, can be more than a bit daunting.

Understand why you need it.

While most people may need life insurance at some point in their life, don’t buy a policy just because you heard it was a good idea. Determine the amount of coverage you need.
The amount of money your family or heirs will receive after your death is called a death benefit. To determine the proper amount of life insurance an Online Calculator is a great way to get an idea of what you need. You can also get a ballpark figure using any number of formulas. The easiest way is to simply take your annual salary and multiply by 8.

Find the right type of policy.

Once you figure out how much coverage you’ll need, you can think about the best kind of policy to meet your needs. Look at the quality of the provider. An insurance policy is only as good as the company that backs its. Consult a financial professional. A financial professional can help you factor in financial considerations, your needs, and your family’s needs.

Want to find out more? Contact one of our Insurance Architects and we will listen to your needs, and help you determine the best options for you.