Tag Archives: life insurance

Who Needs Term Life Insurance?

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Conversations about life insurance are awkward at best. Coming to the realization that you or a loved one wouldn’t always be around could be quite difficult. There’s often a lot of apprehension talking about life insurance, but you should. In this blog, we’ll discuss what term life insurance is and who exactly needs it. 

Understanding Term Life Insurance

First, let’s get a deeper understanding of what this type of insurance is exactly. Term life insurance is considered, by many, the simplest, most accessible and most affordable form of life insurance. 

Definition

As the name states, it’s a policy that lasts a defined length of time, typically 10, 20, or 30 years. 

Should the policyholder die during the term, their named beneficiaries will receive a predetermined payout, known as a death benefit.

How Does Term Life Insurance Work?

The policyholder is required to pay their regular premiums on time. If that policyholder passes away during the term, the insurer then pays out the death benefit to their beneficiaries. However, if a policyholder lives past the end of the term, the benefit is not paid.

The Importance

Financial Protection for Loved Ones

Providing financial protection to your loved ones is the primary reason people purchase this type of insurance. This gives your loved ones the ability to cover living expenses, clear debts, and maintain their lifestyle after you’re gone.

Who Benefits Most from Term Life Insurance?

Parents With Young Children

If you’re a parent, then you will want to use this type of insurance to secure the financial future of your children. This can provide for their upbringing and education should anything happen to you.

Couples With Joint Debts or Shared Financial Obligations

Couples that have shared debts or financial obligations will find that term life insurance can provide peace of mind that these obligations will be taken care of should one partner pass away.

Business Owners

Business owners might be inclined to take out term life insurance to cover their business debts or to provide a greater financial cushion for their business’s continuation after their death.

Finding the right life insurance can be challenging, but Louisiana Farm Bureau Life Insurance is here to help. Protect yourself by having a high-quality life insurance policy. Get started and get a quote today.

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How Much Life Insurance Do You Need?

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Life insurance is a strategic and important part of financial planning, but it often gets overlooked in the wake of more pressing expenses. But if you don’t have life insurance at all, or you don’t have enough life insurance, you should get on the phone with a Louisiana Farm Bureau Insurance agent right now! You will never again be as young as you are at this moment! The younger you are when you purchase life insurance, the lower the cost.

Sometimes it’s hard to know how much life insurance you really need. There are a few different angles to consider.

What Should My Life Insurance Cover? Factors to Consider:

Funeral Costs

Have you considered what happens when you’re gone? The average burial costs $15,000 for preparation, viewing and burial. Cremations are more affordable but still steep. Loved ones can expect to pay about $4,000 for cremation. So first off, you and your immediate family members all need life insurance policies that cover funeral expenses.

Your Debt

Do you have debt? Most of us do. Unfortunately, that debt doesn’t just disappear in the event of your death. It becomes part of your estate, which means the executor of your estate is responsible for ensuring it gets paid.

Mortgage and home equity loans, private student loans, vehicle loans, and jointly held credit card debt all get passed to your next of kin in the event of your death. To avoid unduly burdening them, make sure your life insurance policy covers all your debt.

The Financial Well-Being of Your Dependents

Your family depends on your income. Would would happen if that income suddenly didn’t exist?

First, make sure your family is fully protected by figuring out how many years they will need your financial contribution. Is your spouse expected to live another 40 years? Do your children still have college and graduate school ahead of them? Maybe they still have middle and high school to go, and all the expenses that come with that—food, clothes, sports, dance lessons, summer camp, etc.

Take the number of years the youngest member of your immediate family will require your financial support, and then multiply that by your annual salary. Now add one more year’s salary per decade, to account for inflation. If you plan to be responsible for higher education, add an additional $100,000 per degree.

Don’t Forget Pets

Estimate how much you spend per pet, per year. Add up all those vet visits, heartworm pills, food and boarding costs. A dog may cost up to $20,000 over the course of its life, which is a sizeable expense!

Add all four of these numbers together. You’ll need a policy that covers this grand total.

A safer way to protect your loved ones, savings and investments.

Unlike your other assets, creditors can’t touch life insurance as long as your beneficiaries are still living.

If you have any questions, one of our agents would be happy to help you figure out exactly how much life insurance you need. Get in touch today!

Source:

https://www.nerdwallet.com/blog/finance/debts-after-death-life-insurance/