Does Anyone Need Life Insurance ?
Life insurance pays benefits to surviving dependents or other beneficiaries after an insured policyholder passes away. Following are some instances of persons who could want life insurance:
- parents of young children Financial hardship may result from the loss of a parent’s income or caring abilities. Life insurance can ensure that the children have the resources they require until they are able to sustain themselves.
- staying-at-home partners. Spouses who stay at home should obtain life insurance since they are very valuable financially because of the work they do at home. Salary.com estimates that in 2018, the economic worth of a stay-at-home parent would have been $162,581 per year.
- adults who jointly possess property. Life insurance may be a good option if, married or not, the death of one adult would prevent the other from continuing to pay the mortgage, maintain the home, and pay property taxes. An illustration would be an engaged couple getting a combined mortgage to purchase their first home.
- young people their age who seek to secure affordable charges. Your insurance rates will be cheaper the younger and healthier you are. If it is anticipated that they may have dependents in the future, a 20-something adult may get a policy even though they do not currently have any.
- affluent households who anticipate paying estate taxes. Taxes can be paid with the help of life insurance, preserving the entire value of the inheritance.
- companies that employ key personnel. If the loss of a key employee would put the company in a precarious financial situation, such as the death of the CEO, the company may have an insurable interest that will allow it to purchase a life insurance policy on that employee.
- families unable to pay for burial and funeral costs. A little life insurance policy might offer money to pay respects for a loved one who has passed away.
- Seniors who wish to leave money to their caregiver adult children. Many adult children miss employment to care for an older parent who need assistance. Direct financial aid may also be a part of this assistance. Life insurance might be able to help with some of the costs for the adult child after a parent passes away.
- parents of grown children with special needs. Life insurance can ensure that the requirements of children who will always need care and never be independent are addressed when their parents die away. The death benefit may be used to finance a special needs trust that will be administered by a trustee for the advantage of the adult child.