 Defining
Your Needs Is The Place To Start
Life insurance is simply protection to
ensure that your family will have financial security when you die. If
something should happen to you, how will they be able to continue doing
the things they take for granted, like live in a nice home, continue their
education, or create a retirement nest egg without you? Life insurance
can help to provide the answer.
In this section, we'll help you begin to think about
Life insurance. We'll take a look at the two basic types of Life
insurance, how to achieve an appropriate level of Life insurance, how to
read your policy and address typical planning concerns. All designed to
provide you with a framework for considering how much life insurance you
need.
There are many reasons for purchasing life insurance
among which are the following:
- Family protection to provide financial security to
surviving family members on the death of the insured person.
- To pay for children's education.
- Insurance to cover a particular need such as paying
off a mortgage or consumer debt upon the insured's death.
- Business insurance to compensate a company on the
death of a key employee or to provide a surviving partner the resources
to buy out the deceased partner's share of the business.
- To provide funds to pay estate taxes or other final
obligations necessary to settle a deceased person's estate.
- To provide the funds necessary for the deceased
person's burial expenses.
- Accumulation of funds to supplement retirement
income.
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