Family Life Insurance! Why Your Loved Ones Need Coverage TODAY

Reasons You Need the Best Family Life Insurance & How to Get It

Life insurance is a great tool! It provides you with a safety net to protect the people you care about from the financial devastation that a death can cause. Too many assume life insurance is for young parents.

While this is the norm, there are many exceptions to this rule, and finding the best life insurance policy for the various people in your family is essential.

So let’s check out the many reasons your kids or even your parents may need coverage right now:

1. Income Replacement

This is the one of the biggest reasons for families to think about life insurance. What happens if a breadwinner dies prematurely?

A term life insurance policy is the most affordable way to make sure that your family isn’t left destitute in this event. Remember, if you’re gone, so is your pay-check. A fast rule of thumb is to have 10 times your salary in coverage.

1. A Second or Third Career for Grandma or Grandpa

People are living longer AND working harder. Retirement isn’t what it used to be.

Many clients opt to start businesses they dream of later in life. When you have kids, it can be challenging to take chances. That’s why that government job with benefits looks pretty damned good when you’re raising your family.

Hey, you even get paid time off.

That being said, when your children fly the coop, everything changes. You no longer have all the responsibility you once had.

If you launch a business because you’re entrepreneurial, you take on a lot of responsibilities. Maybe you have a loan, employ people, maintain a lease, or have a partner. No matter how you slice and dice it, chances are you have financial obligations.

A life insurance policy can protect your loved ones and business associates from damage if you die unexpectedly. This is an excellent reason to take out a life insurance policy; many banks require it as collateral for a loan.

2. Life Insurance for Children & Newborns

Purchasing life insurance for newborns or children may seem… dark. But I am here to tell you it offers several benefits that provide long-term security. One of the primary advantages is guaranteed insurability. Your child will have coverage later in life, even if they develop health issues that could make obtaining insurance difficult or costly later in life.

Additionally, securing a policy at a young age locks in lower premiums, potentially saving them money down the line. For policies like whole life insurance, there’s also the benefit of cash value growth. This can be a savings or investment vehicle for your kids to access later.

Then, we have the topic no one wants to talk about. In the unfortunate (and unlikely) event of the child’s death, life insurance can cover funeral and burial expenses, easing the financial burden on a family.

Finally, life insurance can establish a financial legacy by providing funds for purposes such as education, purchasing a home, or other future needs as your children reach adulthood.

3. A Second Family

Divorce is common, and sometimes people start a second family. If that’s the case, maybe have younger children you want to care for.

People involved in second marriages often want to ensure ALL their children are acknowledged when they move on to the pearly gates. Life insurance is an excellent way to adjust any inequity.

This approach can protect a new wife or husband if you pass away unexpectedly.

4. Estate Planning

Everyone wants to pass on an inheritance to their family. It’s one of those things we all dream of.

Family life insurance is a terrific tool for achieving this goal. If you have money, you can use a life insurance policy to pay taxes, leave money to your favorite charity, and/or preserve your wealth for the next generation.

Another great trick is to consider a joint last-to-die policy to cover potential liabilities. In a marriage, when the 1st spouse dies, assets typically rollover to the surviving spouse. A joint-last-to-die policy pays out on the death of the 2nd spouse to take care of taxes, estate costs or to leave money behind for kids and grandkids.

Once you purchase this policy, the growth isn’t taxed, and the payout goes to beneficiaries tax-free!

This is an excellent tool if you have a cottage that you want to keep in the family. A medium-sized cash-value life insurance policy can cover any capital gains tax due on the cottage.

It’s nice to know a family tradition will continue when you’re long gone.

5. Gift From Beyond the Grave

OK, the will is done, and your kids are cared for, but life has changed.

You have grandchildren now, and they are growing up fast. You’d love to leave them something, but you’re unsure where it will come from.

Maybe you want to help them get through university or give them a head start. A life insurance policy is perfect for this.

You can purchase a small permanent policy that gives them a nice chunk of change to let them know you’re thinking of them. Thanks, Grandpa and Grandma!

6. Final Expenses

Funerals are costly. I think this is one of the most underestimated costs people encounter.

If you don’t plan for your burial, this burden will be left to your family. When you’re talking about $10 – $20K, it can be a real financial punch in the gut, especially when they’re dealing with the emotional devastation that comes with loss.

So, if you’re looking for family life insurance, you may want to buy a small permanent plan that will cover these funeral costs. For approximately $60 per month, a healthy 60-year-old male, non-smoker, can buy a $20,000 life insurance policy to cover final expenses.

Many carriers offer smaller amounts of coverage, down to $5000. After all, some protection is better than none and many consumers are now opting for low-cost cremations.