How does life insurance contribute to financial planning?
Answered by 28 licensed agents
Answered by Gregg Matheny on March 26, 2025
Agent Licensed in AZ & UT
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of life insurance, like whole life or universal life, accumulate cash value over time, which can be borrowed against or withdrawn for various financial needs.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 & ME
Answered by Charise Karjala on May 12, 2025
Broker Licensed in CA, AZ, CO, PA & WA
Answered by Brian Moore on March 27, 2025
Broker Licensed in OH
Answered by Gary Church on May 31, 2025
Broker Licensed in Ca, AZ, NV & TX
Answered by Mark Maliwauki on March 4, 2025
Broker Licensed in ID, AZ, CA & 15 other states
Answered by Christopher Boyd on March 4, 2025
Agent Licensed in IN, KY, MI, OH, PA & TN
Answered by Robert Moore on February 11, 2025
Broker Licensed in IN, AL, IL & 11 other states
Answered by Don Hudson on April 29, 2025
Broker Licensed in FL
Answered by Justin Sonon on April 14, 2025
Broker Licensed in Pa, DE, FL & IL, MD, NJ & SC
1. We all know we will leave this earth one day. Life insurance is used for final expenses like burial expenses.
2. 70% of people who live to age 65 will need some form of long-term care (LTC). Some life insurance policies include living benefits for chronic, critical and terminal illness. Living benefits are benefits you can use while you're living that's included in some life insurance policies. Yes!
Chronic Illness is when you cannot perform 2 of your 6 activities of daily living. They are continence, transferring, toileting, bathing, dressing and eating.
Critical Illness includes, stroke, certain types of cancers, heart attack, kidney failure plus many other illnesses
Terminal Illness is if a medical physician say you have 12 to 24 months to live.
3. Some life insurance plans build cash value that people use to supplement their retirement.
4. If you want to leave a legacy to a loved one or charity, life insurance is perfect as the death benefit goes to your beneficiary income tax free!
Answered by Sandra Bailey on May 28, 2025
Broker Licensed in TN, AL, AR & 13 other states
Answered by David Moscowitz on June 11, 2025
Agent Licensed in NY
Answered by Steven Bleicher on May 30, 2025
Broker Licensed in AZ
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
Answered by Cathy Barnett on June 8, 2025
Broker Licensed in TX, AL, NC & SC
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
You want to get as much as you can as early as you can, because when your health turns, it may no longer be available to you.
Also, the younger that you apply for life insurance, the less expensive it will be. You want to meet with a good and reputable Life Insurance agent to explain the types that are available, the amount that is appropriate for you, and the cost attending to each.
If you don’t qualify for larger amounts of insurance because of health challenges, you can often get Final Expense policies for lower face amounts, again with the help of a good life Agent. These benefits are to provide for those you leave behind and care for, not to make your beneficiaries rich!
Answered by Ross Landon on May 19, 2025
Agent Licensed in UT
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
Answered by Mitchell Nunn on June 11, 2025
Broker Licensed in FL, MA & NC
Answered by Gabrielle Sones on May 13, 2025
Broker Licensed in TX, AZ, FL & 7 other states
Answered by Melanie Blackston on May 28, 2025
Broker Licensed in SC, GA & NC
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
Having a licensed life insurance broker guide you based upon your unique situation is important. If you need any assistance, I would be happy to help.
Answered by Joseph Lombardo on May 5, 2025
Agent Licensed in NY, CT, NJ & PA
Answered by Adriane Williams on March 27, 2025
Agent Licensed in OK, AK, AL & 48 other states
Tags: Advice for Seniors Life Insurance
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