Life Insurance for Your Family

While family owned life insurance can have many goals, its primary use is to protect surviving dependents or a family from the financial burden of the early death of a breadwinner. Over 70% of American families have some form of life insurance – either individually owned or through their employers. Without a source of income, a family is unlikely to meet mortgage payments, to provide for college, or to prepare for retirement. A family can face tremendous financial difficulties as a result of an uninsured death. A properly designed life insurance plan can bring a variety of benefits to the beneficiaries:

  • provide income for surviving family members
  • pay debts
  • pay for children’s education
  • pay estate settlement costs such as probate costs
  • pay federal and state death taxes
  • meet the special financial demands of physically or mentally handicapped dependents
  • shift wealth from one generation to another in a cost-effective manner possible
  • avoid forced liquidation of a business or income property
  • provide a lifetime income for a surviving spouse

Personal life insurance policies can even be used to fund charitable objectives. A life insurance policy held for the benefit of a church, school or other favorite charity allows a family to make a substantial donation for the moderate cost of the premiums. Families with young children have a clear need for life insurance. If both spouses work outside the home the loss of even one income may cause the family immediate financial hardship. Even in a family with one spouse working in the home, the need to hire caretakers, child care etc. can present hundreds of thousands of dollars in unanticipated costs for the surviving family. These losses can make it more difficult to reach future goals, like sending kids to college. Even if a person is married without children or is single, there are often significant costs associated with his or her death. Funeral expenses, probate and fees, debts, and federal and state taxes are likely regardless of your marital status.

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