5 Types of People Who Need Life Insurance
5 Types of People Who Need Life Insurance the Most
The people who really need life insurance are the accident-prone, heavy drinkers, long-term smokers, and careless daredevils, right? Well, yeah, in a perfect world.
Here are five less obvious types of people for whom life insurance may be particularly useful.
Why? Because the younger you are, the less expensive it is. And if you wait until later and get sick, you may not qualify anymore.
Why? Because if the breadwinner dies, the policy’s death benefit covers his or her salary. Or, if the family caregiver dies necessitating childcare or eldercare, the caregiver’s policy will cover the care costs.
Also, many insurance policies serve as investment vehicles that you can use for college tuition, paying off debt, funeral expenses, or a financial legacy for your kids or a favorite charity.
For parents raising a chronically ill child, a short-term children’s policy may make sense. Why? Because converting a short-term policy to another one when your child becomes an independent adult will prevent them from disqualifying due to their health issues.
2. Business owners.
Why? Because you can structure your policy so that, if you die before selling your business, your partner can buy you out, leaving the proceeds to whoever you’ve designated to receive it. Your children can also use your policy to cover the costs of selling or running the business themselves.
And because your policy covers outstanding business costs, it also protects anyone who has co-signed credit card or loan accounts with you.
3. Tax masters.
Why? Because some premium payments are eligible for maximum tax benefits. Just as with death benefits, insurance company investment payouts are non-taxable, depending on the type of insurance you’ve purchased
Cash value payouts can also pay estate or inheritance taxes.
4. Savvy savers.
Why? Because you can choose a policy that charges a premium payment higher than the policy is worth. Your insurance company can then invest the balance into its own financial portfolio, generating cash value you can reinvest in other assets like property and annuities or to fund your retirement. You can also withdraw all or part of your insurance equity in an emergency. Withdrawals are tax-free up to several million dollars.
Unlike transgressions, debts are not forgiven. Life insurance protects your heirs as well as your co-signers from debt collectors. Thankfully, student loans are forgiven.
The fact is, we all grow older. As you’ve read this blog post, you’ve aged a minute or two.
Take a few more moments and think…how will you fund your life when you can no longer work? Will your loved ones have enough money to live comfortably after you pass on?
No matter who you are, what stage of life you’re in, or what you choose to do with your money, life insurance makes sense. Find affordable life insurance today.