Do You Need A Life Insurance Policy?

Written on March 3, 2015 by Bill

One question that is most commonly asked by most people is “Why do I need a life insurance policy?”

The answer to this question lies in where your current personal life situation may be:

Are you married?

Do you have dependent children?

Have a mortgage?

Do you own a business?

Do you have elderly parents with financial obligations?

As you can see, the list goes on and on. There are many reasons to have a life insurance policy but the most important reason you need a life insurance policy is because you care about the people you love.

(Quick Tip: Use the quote form on this page to see rates and pricing from our top insurance companies. Life insurance is not as expensive as you may think).

Life insurance pays out a benefit should you die while the policy is in force. Simply put, as long as you pay your premiums, a death benefit will be paid in cash. It can provide the funds needed for your family to pay expenses such as burial costs, pay off your mortgage, loans and basically give your family liquid cash to take care of things financially if you are not around.

Many people think that life insurance is only for the wealthy but the truth is life insurance if for those who have very little discretionary income. It provides liquid cash so your family or loved-ones can go on with their lives in the event you are not there.

You should consider life insurance if:

– You have dependents

The moment you are responsible for another person in your life, you need life insurance. Whether it’s your children, a spouse or employees, if someone counts on your ability to earn an income, then you need life insurance.

– You have elderly parents with medical expenses and debt

Life insurance is just not for young working couples anymore. People are realizing there still could be a need for coverage in their later years. Some parents, although retired, still have a mortgage and when they pass away, this mortgage will need to be paid off. Often the children are responsible. The value of the home might not be enough to satisfy the outstanding loan. There could also be medical bills, final expenses, funeral bills and so on.

– You have a mortgage, loans or other debts

If you have a mortgage, you need life insurance to help your spouse or significant other to pay off the mortgage. OR if your spouse chooses not to pay off the mortgage, he or she can set the money aside so the mortgage can be paid monthly along with real estate taxes that never go away.

Do not buy mortgage insurance. There are many reasons to not buy mortgage insurance but the main reason is, Mortgage insurance is not life insurance. It is specifically used to pay off your mortgage and required by your bank to satisfy the outstanding loan on your home. There is no flexibility with mortgage insurance. It pays the mortgage, the banker is happy and that is it.

– You own a business

If you own a business, or you have partners in your business, life insurance is a necessity. If you or a partner dies, life insurance provides liquidity to pay off the partner’s ownership of the business.

Consider this: If your business partner owns 50% of your business and dies, his wife or brother, sister or some other family member just became your new business partner. If your business had life insurance proceeds on all of the business partners, sometimes called Corporate Owned Life Insurance or Buy-Sell Insurance, the family member would receive their inherited half of the business and you would no longer be obligated.

Life insurance is one of the most important assets a person with a family or loved ones or a business can own. If you have a financial plan and you do not have life insurance, you do not have a financial plan.

About Behr Insurance
About Behr Insurance

Bill Behr has been helping people make smart decisions regarding life insurance planning for more than 20 years. While most insurance advisors attempt to be everything to everyone, Bill focuses on the life insurance needs of families and business owners. Contact me directly at: 914-633-1717 to learn how you can save money.

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