Why do I need life insurance?

If someone depends on you financially, you are most likely someone who needs life insurance.

Life insurance provides cash to your family or loved ones after your death. This payment, known as a death benefit, replaces your income and lost economic output (and is generally received on a tax-free basis). Your family can use this cash to pay for expenses like funeral costs, mortgage/rent, college tuition, and more. Some examples of those who need life insurance coverage include:

Married or Partnered Couples:

Many partners find it difficult to make ends meet without the other earner’s income.

Married or Partnered Couples with Kids:

In addition to losing one partner’s income, the surviving parent may have to pay for childcare or perform extra duties without the help of their spouse.

Single Parents:

As the sole income earner for your family, you’ll want to think about how to replace your children’s only source of financial support.

Stay-at-Home Parents:

From cooking meals to shuffling kids to school, stay-at-home parents perform many critical responsibilities that would be costly to outsource.

Retirees:

Many surviving partners would not be able to maintain the lifestyle they worked so hard to achieve without life insurance.

High Net Worth:

Depending on the size of your estate, your heirs could be hit with an estate tax rate of up to 45%. Fortunately, cash from a life insurance policy can give your heirs access to a tax-free death benefit to pay for immediate costs and much more.

Business Owners:

Life insurance can help your business in many ways if you, a fellow owners, or a key employee pass away.