Every day you and your spouse take steps to care for and protect the ones you love. How can you make sure your family will still be protected when you are gone? Life insurance is a way to offer your loved ones a degree of protection that continues beyond your lifetime. A comprehensive Needs Analysis can help determine how much life insurance makes sense for your situation.
Planning Concerns How do you establish the amount of money your family will need to meet basic financial requirements in the event that you (or your spouse)are no longer able to provide for them? And what if you also want to provide a legacy for your family or give to charity? Once you've established the funds your family needs, how can you ensure that those funds are available for your family and maybe protected from creditors?
You invest wisely and put away money to protect your family, but even the best investments need time for ongoing contributions and earnings growth. If something were to happen to you along the way, your original plans may not come to fruition. A life insurance death benefit can help complete your financial plan by providing cash to compensate for the loss of planned contributions and earnings.
The Solution Performing a Needs Analysis is a simple way of answering the question of how much money your family will require. A comprehensive analysis will consider salary replacement needs, estate settlement costs, outstanding debt, college funding, any unsatisfied charitable bequests, and any existing life insurance. After performing the analysis, you may find that you do not have enough cash on hand to meet your family’s needs should something happen to you. Life insurance is one of the best ways to fill the gap between your current assets and your family’s future needs.
How Life Insurance Fits The original purpose served by life insurance is still the most compelling; in the event of the premature death of an income earner, life insurance will provide asset and income protection for surviving family members. Life insurance protection provides cash to the family at exactly the time they may need it, regardless of market or economic conditions. This can help a family maintain its economic position after a death. Benefits of Life Insurance The life insurance death benefit provides cash that can serve different purposes; it can fund your family income needs, your survivor's retirement needs, satisfy debt obligations, or establish an education fund. Liquidity from a death benefit can help meet estate taxes and administrative expenses.
The beneficiary, typically your remaining spouse, will generally receive life insurance proceeds income tax-free. In addition, the cash values of a life insurance policy grow income tax-deferred and life insurance permits income-tax-free loans and withdrawals from the policy when such transactions are properly structured.
A Needs Analysis is simply a way of determining how much money your family would need to meet the necessities of life if you or your spouse were not there to provide for them. Life insurance is one of the best ways to provide the necessary liquidity for your family in the event of your untimely death.