There's nothing more important than family. That's why we make sure that your family's financial future is protected in any circumstance.
Here are three ways life insurance helps secure your family's future:
Think about the coverage you would need to help ensure your family's financial security. Learn more about which factors may influence how much coverage you need below.
Help Fill the Retirement Gaps
Life insurance can be a financial tool for those approaching retirement. Find out about ways life insurance can help you in retirement below.
Preparing for Life Changes
New baby? Getting married? With the changes in your life, you may need to consider life insurance or increase your level of coverage. Learn more about which life changes could affect your life insurance needs by scrolling below.
Why You Need Life Insurance
Planning now for your family’s future can help protect them and keep them financially secure when you’re not there to take care of them.
Life insurance proceeds may help your loved ones replace the income they depend on from you. At its most basic, life insurance may help keep your final expenses from being burdensome on those you leave behind.
Some of the factors that may influence how much coverage is appropriate include:
- Your specific age and income
- Your marital status; if married, your spouse's age and income
- The number and ages of your children; whether any of them have special needs
- Projections for your children's future education expenses
- Your family's cost of living
- How much savings you have in place
- Your debts
- Charitable giving goals if any
If you are approaching retirement, or already retired, life insurance can be a useful tool to help secure the financial security of your family's future.
Most of us purchase life insurance to help replace the loss of income that would occur should we die or to create an estate for our loved ones, but there are many other reasons:
- You have an aging parent or disabled relative who depends on you for support.
- You have a large estate and expect to owe estate taxes.
- You own a business and have a partner.
- You have a substantial joint financial obligation, such as a personal loan for which another person would be legally responsible after your death.
Help Fill the Retirement Gaps
Several retired couples rely on Social Security and pension income to survive. If the retired spouse passes, the payments received as a survivor will likely be less than retiree benefits - as ongoing expenses remain. This is where life insurance helps your surviving spouse with the reduction of income. The death benefit can help replace your missing income.
Changes in Your Life
Life changes happen throughout the year. It's a good idea to review your life insurance needs annually to make sure you and your family are properly protected with whatever the year has bestowed upon you. Here are some major life events that might trigger the need to re-evaluate your life insurance coverage:
- The birth or adoption of a child - Would there be enough income to pay for day care, college, and everything in between if something were to happen to you or your spouse? Life insurance may help you answer "yes" to these questions.
- Change in marital status - If you're newly married or just getting married, you probably share many of your spouse's or fiance's dreams for the future – you may also share each other's financial obligations. If one of you were suddenly removed from the picture, would the surviving spouse have enough money to cover final expenses, eliminate debts such as credit card balances and car loans, and buy some time to adjust to a new way of life? If one of you were to die prematurely, life insurance may help ensure that these needs will be met. If you're on your own now, whether through death or divorce, you may want to reassess your overall financial situation, including your life insurance needs. It's almost like starting from scratch again because being on your own will likely affect just about every financial calculation you can think of.
- Home purchase - If you and your spouse recently purchased a home, there's a good chance you acquired a mortgage as well. Could your spouse manage the mortgage payments without your income? What about property taxes, routine maintenance, utilities and unforeseen repairs? How long would your spouse have before your dream house was up for sale? Life insurance coverage may help keep the family you love in the home they love.
- Job change - If you recently changed jobs, a salary increase may have come with it. You may not realize it, but when your income increases, your spending tends to increase too. If something were to happen to you, you'd probably want your family to be able to maintain their new and improved lifestyle. That's why it's a good idea to reassess your life insurance coverage whenever your income rises.
- Planning for college - College costs continue to increase so you may want to begin your college savings efforts sooner. Having a regular savings strategy is just one part of a balanced college funding plan. You may also want to consider a smart risk management strategy to help ensure that your college savings goals will be achieved even if you're not there, and that strategy may include life insurance coverage.