Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona
Video Transcript: Today's question is: Why do I need life insurance? You need life insurance if you have financial indebtedness, if you have beneficiaries that would have to pick up that tab if you were not there. We'd also need future obligations that you want to be able to make sure that you protect; it could be college planning, it could be retirement planning. Anytime you have obligations that you want to protect your beneficiaries from, whether it's indebtedness, future obligations, even charitable intent, you want to make sure that you're covered with life insurance.
You can get coverage sometimes through group plans through work, you could buy individually, and sometimes you can buy small units with guaranteed underwriting so you don't have to go through the underwriting process. Even simplified underwriting can do it. Whether you're using full underwriting, simplified, or guaranteed, you can get the coverage that you need to protect your beneficiaries from the financial liability that you may incur.
Some reasons for purchasing life insurance are as follows:
1) To pay off debt or mortgage.
2) To be collateral for a loan.
3) As part of a divorce settlement.
4) To raise children to adulthood.
5) To provide their children with a college education.
6) To use in business, such as key person or business succession.
7) To fund funeral costs.
8) To make a charitable contribution.
9) To provide income for surviving spouse, live-in grandchildren, or adult disabled children.
10) To pay estate settlement costs.
Because life insurance pays quickly, is usually tax free, and can be left to the person(s) of your choice, it is a very popular vehicle to use for many financial needs.
President, Lane Independent Agency, Southern California
Everyone dies. What are you doing to protect your family when that happens? Do you want them to exhaust your assets and savings? Will that be enough? Will they outlive your money? The cost of Life Insurance, versus the benefits, is very low. With Term, you can start at a lower price. With Whole Life, you can borrow against it and pay for college or your home, or your retirement. Either way, something is better than nothing. New York Life offers a large variety of choices.
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You can get coverage sometimes through group plans through work, you could buy individually, and sometimes you can buy small units with guaranteed underwriting so you don't have to go through the underwriting process. Even simplified underwriting can do it. Whether you're using full underwriting, simplified, or guaranteed, you can get the coverage that you need to protect your beneficiaries from the financial liability that you may incur.
1) To pay off debt or mortgage.
2) To be collateral for a loan.
3) As part of a divorce settlement.
4) To raise children to adulthood.
5) To provide their children with a college education.
6) To use in business, such as key person or business succession.
7) To fund funeral costs.
8) To make a charitable contribution.
9) To provide income for surviving spouse, live-in grandchildren, or adult disabled children.
10) To pay estate settlement costs.
Because life insurance pays quickly, is usually tax free, and can be left to the person(s) of your choice, it is a very popular vehicle to use for many financial needs.