In the same way, you change your will over the years to reflect your desires and wishes as they change, it’s necessary that you re-evaluate your life insurance needs over the years. Many things can happen over time that needs your attention, and your current life insurance might not be enough to deal with the financial problems that could occur. The best life insurance would be one that can help deal with the following:
Getting Married
Financial obligations can become complicated when you’re getting married unless you discuss them thoroughly with your spouse. It can become increasingly difficult for one spouse to maintain the same standard of living if their better half passes away and they don’t have a life insurance policy.
With a life insurance policy, you can ensure that the death benefits will be helpful for your spouse to take care of many of the financial obligations in your absence.
Having Children
When you’re expecting a child or have young kids, it’s recommended that you go over your family life insurance needs. Raising a child is financially straining and can be fairly taxing for one parent to handle on their own. With a reliable life insurance company payout, many aspects of a child’s education and day-to-day expenses can be taken care of.
Mortgage Protection
Many people acquire life insurance to carefully deal with mortgage costs. If you pass away, your next of kin will be able to deal with the financial strain that may pass on to them. Experts recommend that you opt for whole-life insurance instead of a term life insurance plan, as your policy might not last long enough to pay off your home. You also need to factor out decisions like remortgaging and moving into a better property, as it can raise the amount you owe.
Business Protection
As a self-employed individual, you must ensure that your business is protected and that you have the necessary measures to take care of your debts. It’s common for people to invest large amounts of money in their business, and the changing value of equipment or property can be an issue.
Ensure that you have a life insurance policy, so your family doesn’t have to bear the burden of your debts.
After Divorce
If you’re going through a divorce, it’s recommended that you make swift changes for the beneficiaries in your policy. If you don’t have children, the process is fairly simple, as only the beneficiary needs to be changed. Depending on whether you own the policy or your former spouse does, changing the beneficiaries can become difficult, and you might require a new policy altogether.
For Estate Planning
While many people focus on preparing a will and/or trust while taking on estate planning, they tend not to consider the ramifications of taxes. In the case of a large estate, you can be taxed heavily on both state and federal levels. People tend to take out life insurance for tax planning. Not only can it reduce your taxes, but in some cases, eliminate them or simply provide you with the necessary funds for paying them off.
Many of your beneficiaries can use them to prevent asset sales while providing them with liquidity for dealing with various other costs.
Retirement Planning
A permanent life insurance policy allows people to accumulate a lot of cash, which works perfectly in combination with other sound investments. You don’t have to sell assets when you’re withdrawing your amount. For any loans against the cash value, capital gains or ordinary income taxes generally don’t apply. Similarly, your beneficiaries get your life proceeds tax-free, which isn’t the case with other investments. Be aware that any loans against policy reduce the death benefit depending on the remaining loan and interest.
Work with Us
Do you need a life insurance agency that can help prepare for the aforementioned moments of your life? Get in touch with us at Franklin Life & Annuity right away. We provide all the necessary information as well as a variety of options that you need to ensure that your affairs are dealt with properly after your passing. If you need life insurance for the entire family or require final expense insurance, our services can assist you.