Every year it seems to get more difficult to decide what to buy at Christmas. While I can remember a time growing up when my family exchanged gifts with our entire extended family, today, that has all changed. These days, it seems everyone is on a budget and the gift exchange list has gotten smaller each year. With so many Americans worried about job security, it is not surprising many of us dread having to make decisions about what to spend money on during the holidays.
Unfortunately, I see people all the time that have been left in a terrible financial situation because someone in their family did not have life insurance. If you happen to find yourself in this situation, having a good Christmas will be the least of your concerns.
With so many families just getting by, it only takes a few unexpected bills to put them in a situation where they can no longer afford their home, their car, and maybe even food on the table. Because many people do not have a financial advisor or insurance agent, life insurance may not be something they even consider buying. But if you want to give your spouse, partner, children or other loved ones a real gift, consider making a purchase that will not be forgotten as soon as the trends of this year have come and gone. Consider giving them the lasting gift of financial security through estate planning.You may be thinking you do not need life insurance right now. After all, you are not expecting anything to happen, and perhaps you are not planning to go zip lining anytime soon. But we all know that the most random, unexpected thing can happen to change everything. One of the most bizarre stories I read about recently was that a
man was killed by a tape measure falling 50 stories. A 58 year old man in New Jersey died after being struck by a tape measure that fell from a high rise under construction. And when I learned that my local grocery store had been robbed this week at gunpoint in the middle of the afternoon, I realized even the most mundane activities involve unexpected risk.Although it does take a substantial amount of time to make an estate plan, it is really easy to buy life insurance, especially with so many life insurance quotes available online. You may have more than a few good reasons to put off making a will or living trust, but there really is no reason you cannot quickly set up a life insurance policy if you need one. It is one part of your estate plan you can set up immediately and have the satisfaction of knowing you have done something wonderful for the beneficiaries you choose.Copyright 2020 Pennyborn.com. ALL RIGHTS RESERVED.
Reasons to Buy Life Insurance
Even if you have never thought about buying life insurance before, take a few seconds to review a few of the many reasons to buy life insurance. There are several different types of policies you can choose from, many of which are easy to fit into any budget. Check out these 10 Reasons to Get Life Insurance.If you are single and have no dependents, there are still several reasons you should consider purchasing a life insurance policy. See 6 Reasons Single People Need Life Insurance.
Life insurance can also be part of a well executed financial plan. However, there are many different types of life insurance, so get input from a financial advisor before choosing a policy.
Expenses Your Family May Have to Pay When You Die
The following is a list of expenses your survivors may have to pay, and types of income they may have to replace, if you pass away suddenly.
1. Funeral and Burial Expenses 2. Medical Bills 3. Mortgage Payment or Rent 4. Car Payment or Auto Lease 5. Replacement of Your Lost Income 6. Child Care or Care of a Dependent Adult 7. College Tuition 8. Retirement Income 9. Long Term Care 10. Pet Sitting, Kennel Boarding or Pet Care 11. Income Taxes, Property Taxes, and Estate Taxes
Life Insurance: Avoid Being a Burden
Buying at least a minimal amount of life insurance is a good way to ensure you will not be a burden to your loved ones. If you currently have debts or financial obligations, buying life insurance may be the only way you can ensure your survivors will not have to suffer financial consequences if something happens to you.
Even if you do not have significant debts or financial obligations right now, you may leave behind medical bills from an unexpected injury or illness. Also, most people underestimate the cost of funeral, cremation, and burial expenses. Your family and friends will want to honor you and make suitable final arrangements. If you have specific last wishes you expect to have honored, life insurance could help your spouse, partner or another family member pay the cost of your memorial preferences.
Estate Taxes and Asset Protection
The majority of people do not hold their life insurance in a trust. However, there are some circumstances in which a trust can provide important benefits. For example, if you are concerned about estate taxes, asset protection from creditors or controlling distributions to certain beneficiaries, you may want to consider creating a life insurance trust. If you have any of these concerns, discuss the benefits of life insurance trusts with an estate planning attorney.
INFORMATION ON THIS SITE, INCLUDING ARTICLES, ESTATE PLANNING FORMS, AND THE ESTATE PLANNING BLOG, DOES NOT CONSTITUTE LEGAL, FINANCIAL OR TAX ADVICE. Pennyborn.com is not a law firm and is not a substitute for a lawyer. Your use of this site does not create an attorney-client relationship. Information on this site is for educational purposes only and may not be accurate, complete or up to date.
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