Life Insurance
What is Life Insurance?
Life Insurance is a simple answer to a very difficult question: How will my family, loved ones, or business manage financially when I die?
It’s a subject no one really wants to think about. But if someone depends on you financially, putting together an answer in the form of needed Life Insurance allows you to take control of the situation and answer that difficult question in the way you want.
Instant Monies for Your Loved Ones If You Die
There are many types of Life Insurance, but for all types the bottom line is the same; Life Insurance policies pay cash to your beneficiary (you choose; your family, friend, business) after you die, allowing loved ones to remain financially secure. Life Insurance money can be used to cover daily living expenses, mortgage payments, outstanding loans, college tuition, essential expenses, and all those little daily expenses we all incur.
The Benefit Monies Received are Tax-Free
And the death-benefit proceeds of a Life Insurance policy (the cash) are almost never subject to federal or state income taxes. The benefit you choose is the amount received in case of your death. Life Insurance can guard against the need for your loved ones to make drastic changes to future plans when you die (such as having to sell a home or business, pull out of school, your spouse rushing back to work, etc.).
And There Can Be Living Benefits
Certain types of permanent Life Insurance feature a built-in cash-accumulation feature that can help you reach savings goals while you are living, and you are able to utilize those monies in your lifetime for needs that pop up; large emergency expenses such as a new roof, supplement to retirement income, college tuition, helping pay for long term care expenses, infusing your business with needed cash, etc.
Life Insurance Allows You to Always Keep Your Promise
Click on this 60 second video to learn how Life Insurance is always #apromisekept
“Life Happens,” a non-profit group we partner with dedicated to spreading the word on the importance of Life Insurance, created this video to celebrate their 25th anniversary of work. Watch for a quick reminder of how Life Insurance can help you take care of your loved ones. Always.
I Have Life Insurance Through Work, So I Don’t Need My Own Policy, Right?
Some employers do offer Life Insurance. But it is rarely what you need, and may not contain the same protections as a Life Insurance policy you choose yourself. Consider these points:
Benefit Limitations:
Many employer-sponsored plans limit the benefit amount, for example, to 2x salary, or to a specific amount, like $100,000. That is not enough for many people.
No Protections on Policy if you Leave Employer:
Most employer-sponsored Life Insurance policies end when you leave the company. But you still need Life Insurance. Purchasing your own policy keeps the protection in place no matter a job change, company change, etc.
Plus, Most Employer-Sponsored Life Insurance Policies are Expensive!:
In theory insurance purchased as a group should cost less. The opposite is usually true for Life Insurance, as the rating is based on everyone. A majority of the time buying your own Life Insurance policy costs a lot less for similar coverage.
Stephen and Katie’s Life Insurance Story
“Although nothing can bring Katie back, the Life Insurance has afforded us to be able to keep the life that we had before she passed.”
A mutual friend with a new dog brought them together. Stephen had headed over to his friend’s house to meet the new furry member of the family. When he arrived, he saw Katie playing with dog in the backyard.
“Katie was so outgoing,” says Stephen. “She was the nicest person you’ll ever meet.” That first meeting in their friend’s backyard led to concerts and beach outings, and over time to getting married and thinking about starting a family.
It was Katie who suggested they get Life Insurance. Stephen admits he wasn’t too happy about the idea. They were young and healthy, so he didn’t see the point. Katie, however, convinced him to sit down with their insurance professional, Rose Goheen, who walked them through the process and presented them with affordable options. They both decided to get life insurance coverage, and chose policies that fit their family’s needs and budget.
When the couple welcomed Chase, they decided to reevaluate their life insurance. Given their expanding family and responsibilities, they both bought additional life insurance.
It was during her recovery from giving birth to their second child, Reid, that Katie realized something was wrong. Her doctor confirmed her suspicion that the abdominal lump she felt was something much more serious. In fact, it was an aggressive form of cancer. Katie, with the love and support of her family, valiantly fought the disease, but just over a year later it claimed this young mom’s life. She was just 30 years old.
No words can capture the devastation that Stephen and his boys felt at Katie’s loss. “It’s horrible to lose your soul mate and best friend,” he says. “But I have two boys to support, and I want them to know their dad can carry on.”
Life insurance has helped with that process. “Nothing can bring Katie back, but having life insurance meant we didn’t lose everything,” he says. “I don’t earn enough alone to afford living in our house. Life insurance has eased my financial worries on so many levels.” Thinking back to that first meeting with their insurance professional, Stephen says: “Katie was the smarter one. She knew to plan for the future—our future—with life insurance.”
Don’t Fall Into the “Go Fund Me Inertia” Trap
Have you ever contributed to a “Go Fund Me” campaign? Amazingly, a majority of Go Fund Me campaigns ask for money because someone has died, and they left nothing.
You may have seen one of these on social media. One in particular we saw… a friend of a friend, a man in his early 30's, died suddenly. He left behind a spouse, and a cute, button-nosed little boy.
Friends of this man were trying to raise $10,000 to provide for his young son. To present to the family for expenses that arise, as a memorial for their friend. What a beautiful sentiment! In the story they wrote to appeal to donors, the friends explained that the little boy was the deceased father's number one priority.
I have little doubt that “in the moment” this father felt his son was his number one priority, and probably showed that in myriad ways each and every day. But many people miss the second part...."what if I am not here, living, to make sure my family is comfortable, and without fear of finances?" The future will happen, and you want that "number one priority status" for your family to continue.
That is what Life Insurance does!
The man who died without providing financially for his family fell prey to “Go Fund Me Inertia.” In other words, he knew the importance of the benefits Life Insurance provides. He just never took the small amount of time out of his busy life to get Life Insurance! And this will have tough financial consequences for his spouse and child for years to come. Here’s simple math to illustrate:
Let’s compare this Go Fund Me campaign to someone who purchased a Life Insurance policy with a $500,000 death benefit.
Go Fund Me Campaign, Beneficiaries have $10,000
Costs the beneficiaries will see:
Funeral Expenses, $8,500: Funded
Estate Expenses; $1,500: Funded
Car Loan Due: $11,000: Not Funded
Monthly Bills and Budget: $6,500: Not Funded
Life Insurance, Beneficiaries have $500,000
Costs the beneficiaries will see:
Funeral Expenses, $8,500: Funded
Estate Expenses; $1,500: Funded
Car Loan Due: $11,000: Funded
Monthly Bills and Budget: $6,500: Funded for Years and Years to Come!
In the Go Fund Me example, the monies do not even help cover all of the death expenses. With Life Insurance, the beneficiaries have monies available instantly to pay outstanding bills and debts, and fund future expenses for years to come.
Free Life Insurance Quote
Complete the below form (designed to take you 2-3 minutes) and submit below. We'll send you a free quote of life insurance coverage tailored to your coverage needs! You are also welcome to call us for a quote, or with your questions, (919) 357-6637.
To keep learning more, click here for the next page explaining the need for Life Insurance.