Who Needs Life Insurance?

Mark was hanging out with his family when it hit him. If anything happens to him what would happen to his children? Who will cover their financial needs if something bad happens? Is life insurance the answer? 

Life insurance is beneficial but not for every single situation. Stick around till the end of this blog if you would like to know if life insurance can truly help you and your family. Peace of mind. That’s what’s promised if you purchase a life insurance policy. Let’s look into situations where indeed having a life insurance policy brings value to the policyholder. After all, life insurance is a big investment. It should be weighed properly from the eyes of the investor. Here are some examples of people who would truly benefit from life insurance. 

First, parents with minor children. If a parent dies, the loss of their income may imply a catastrophic financial impact on their children. Life insurance can make sure the kids will have the financial resources they need. This support would continue until these kids grow up and are capable of supporting themselves. Another situation is when parents have children with special needs. These children require lifelong care and will never be self-sufficient. In case their parents pass away, life insurance can fill this financial gap and ensure their needs are met. 

The death benefit can even be used to fund a special needs trust. Owning a property is a strong reason to get life insurance. If the adult doing the payments passes away, the death benefit can be used for paying off the mortgage. Otherwise, the beneficiaries may end up not being able to afford loan payments. The death benefit can also contribute to taxes on property and the overall upkeep of the asset. This situation is also applicable when a couple takes out a joint mortgage to buy their first home. Without life insurance, one-half of the couple may be overwhelmed with paying the entire amount of the mortgage. 

Seniors who have adult children providing for their care instead of working may want to invest in a life insurance policy. People who have student loans can also benefit from having insurance.Instead of pressuring their parents or children with monthly payments. Stay-at-home spouses should have life insurance. That’s because of the significant economic value they possess based on the work they do in their homes. 

Wealthy families who expect to owe estate taxes can also benefit from life insurance. You can check out our other blog on how life insurance should be managed to reduce the Federal Estate Tax in the US. Families who can’t afford the final expenses such as the burial and funeral can benefit a lot from a life insurance policy. The death benefit can be used towards paying tribute to a loved one’s passing. Married pensioners can use the pension maximization strategy and buy life insurance. 

Pension maximization entails the acceptance of the full pension payment and using some of the money to buy life insurance to benefit their spouse. That is better than choosing between a pension payout that offers a spousal benefit and one that doesn’t. Finally, people with pre-existing conditions may benefit from life insurance to cover their long-term needs. 

On a completely different note, businesses that have key employees such as a CEO can benefit from life insurance. Since the CEO’s death may produce hardship for the firm, the death benefit may support the company’s way forward. You can now see how life insurance may be beneficial for many people in society.