When John recently lost his wife Betty to cancer, their children were surprised to find out that neither John nor Betty had life insurance. As a result, the children ended up paying the cost of the funeral, and John, currently on a fixed income, is left contemplating whether he can afford to stay in the home they had lived in for over 25 years.
An untimely death can have a major financial impact on those left behind, particularly if there is a mortgage to pay, credit card debt, or an outstanding auto loan. Even final expenses can be a burden.
When it comes to retaining life insurance in retirement, there are two schools of thought regarding its necessity. The primary purpose of life insurance is to protect your family against a loss of income should you or your spouse pass away. Life insurance benefits are especially important for individuals who still have dependents or have accrued a significant amount of debt. So, if you don’t fit this description and have plenty of income to live on in retirement, is it really necessary for you to retain a policy?
Life insurance can be a very valuable financial tool, and although it may not sound terribly exciting, life insurance can be a lot more complex than most people realize. There are many different types of life insurance, and each of them has different features, benefits, and functions in a well-rounded financial plan.
September is Life Insurance Awareness Month, and as this is one of the most misunderstood financial tools (both by financial advisors and by the general public), we wanted to take this opportunity to share some useful information about the unusual benefits provided by this unique financial vehicle.
There are many different types of life insurance, but the most commonly used are Term Life, Whole Life, and Universal Life.