How does life insurance contribute to financial planning?
Answered by 17 licensed agents
Answered by Gregg Matheny on March 26, 2025
Agent Licensed in AZ & UT
Answered by Brian Moore on March 27, 2025
Broker Licensed in OH
Income Replacement: In the event of the policyholder's death, life insurance provides a death benefit to beneficiaries, which can replace lost income and help maintain their standard of living.
Debt Coverage: Life insurance can cover outstanding debts, such as mortgages, car loans, or personal loans, ensuring that the burden doesn't fall on family members.
Education Funding: Parents can use life insurance proceeds to fund their children's education, ensuring that their educational aspirations are not jeopardized by the loss of a parent.
Estate Planning: Life insurance can be an effective tool in estate planning. It can provide liquidity to pay estate taxes or cover other expenses, preventing the forced sale of assets.
Business Continuity: For business owners, life insurance can fund buy-sell agreements, ensuring that the business can continue operating smoothly after the death of a key stakeholder.
Cash Value Accumulation: Certain types of life insurance, like whole life or universal life, accumulate cash value over time, which can be borrowed against or withdrawn for various financial needs.
Peace of Mind: Knowing that loved ones will be financially protected in the event of an unexpected death provides peace of mind, allowing individuals to focus on their current financial goals.
Tax Benefits: In many jurisdictions, life insurance death benefits are paid out tax-free to beneficiaries, making it an efficient way to transfer wealth.
Supplementing Retirement Income: Some life insurance policies allow for withdrawals or loans against the cash value, which can be used to supplement retirement income.
Answered by Tony Capraro III on March 27, 2025
Agent Licensed in NH
Answered by Christopher Boyd on March 4, 2025
Agent Licensed in IN, KY, MI, OH, PA & TN
Answered by Mark Maliwauki on March 4, 2025
Broker Licensed in ID, AZ, CA & 15 other states
Answered by Justin Sonon on April 14, 2025
Broker Licensed in Pa, DE, FL & IL, MD, NJ & SC
Answered by Don Hudson on April 29, 2025
Broker Licensed in FL
Answered by Robert Moore on February 11, 2025
Broker Licensed in IN, AL, IL & 11 other states
It can also save you from probate on the right policies too!
Answered by Norman Smith on March 29, 2025
Agent Licensed in FL & PA
Financial Security, the ability to borrow money on the policy.
Answered by Michael Pyers on March 26, 2025
Broker Licensed in OH & MI
Answered by Bruce Kern on April 18, 2025
Broker Licensed in NJ, AZ, CO & 13 other states
Life Insurance demonstrates to yourself and the ones you love that you are not selfless
Answered by Jeffrey Simpson on March 7, 2025
Agent Licensed in NC, GA & SC
Answered by Fred Manas on April 15, 2025
Agent Licensed in NY, CT, DC & 7 other states
Answered by Aisha Saleem on March 13, 2025
Agent Licensed in MD & FL
However, the importance of carrying the proper amount and type of life insurance serves many more expansive purposes than just providing for mere burial expenses. Just a few examples; income replacement for a growing family, child's college tuition planning, retirement planning, Long-Term care planning, Estate Planning and more.
So, life insurance has evolved well beyond just serving as merely a death benefit, though that is still a key feature. Today, it also provides "living benefits". If you have not had a recent Life Insurance review with your agent, I encourage you to initiate a conversation. Not having the right amount of coverage or type, is not as bad as having no coverage … but it's a close second place.
Make the call, do not assume it's good … be certain that you've made the best plans possible.
Answered by Ron Gambles on April 22, 2025
Agent Licensed in TN
Life insurance is a premium paid service to allow a financial company to pay expenses, debt and/or provide income support to a surviving spouse and children.
Answered by Edward Cavelli on March 26, 2025
Agent Licensed in Pa, FL, OH, TX, VA & WV
Answered by Adriane Williams on March 27, 2025
Agent Licensed in OK, AK, AL & 48 other states
Tags: Advice for Seniors Life Insurance
Agents: Share Your Expertise
Have insights or experiences related to this topic? Help others by sharing your knowledge and answering this question.
Seniors: Ask a Question of Your Own
Questions are generally answered within 1 to 3 business days. Receive valuable perspectives from multiple licensed agents and brokers.
Ask a Question