 Defining Your Needs Is The Place To Start
Life
insurance is simply protection to ensure that your family will have
financial security when you die. If something should happen to you, how
will they be able to continue doing the things they take for granted,
like live in a nice home, continue their education, or create a
retirement nest egg without you? Life insurance can help to
provide the answer.
In this section, we'll help
you begin to think about Life insurance. We'll take a look at the two
basic types of Life insurance, how to achieve an appropriate level of
Life insurance, how to read your policy and address typical planning
concerns. All designed to provide you with a framework for
considering how much life insurance you need.
There are many
reasons for purchasing life insurance
among which are the following:
- Family protection to
provide financial security to surviving family members on the death of
the insured person.
- To pay for children's
education.
- Insurance to cover a
particular need such as paying off a mortgage or consumer debt upon the
insured's death.
- Business insurance to
compensate a company on the death of a key employee or to provide a
surviving partner the resources to buy out the deceased partner's share
of the business.
- To provide funds to pay
estate taxes or other final obligations necessary to settle a deceased
person's estate.
- To provide the funds
necessary for the deceased person's burial expenses.
- Accumulation of funds to
supplement retirement income.
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