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10 Reasons to Consider Life Insurance.

`1.PROTECT YOUR LOVED ONES: They are your loved ones for reasons only you can express, but the reason you spend a lifetime protecting them is obvious. Life insurance is for the living; it is to ensure the commitment to the lifestyle you always envisioned for them is realized even if you won’t be there with them. To protect them from the financial loss and hardship they could potentially be forced to endure in the event of your untimely death, by filling in the income gap and offsetting expenses.


`2.FINANCIAL REASSURANCE: Life insurance can help protect you and your loved ones from the many uncertainties in life, and help you be prepared for just about any eventuality. You’ll sleep a little easier at night knowing that no matter what, your family will be well taken care of when you are gone.


 3.COVER END-OF-LIFE EXPENSES: Funeral costs can vary widely across the country, but typically average nearly $8,000- $ 10,000. These average costs do not include monuments, markers, or things such as flowers and funeral luncheons. Additional final costs may be relevant as well, such as medical bills, long term care, and other potential end-of-life costs. Including these costs in the life insurance valuation can spare loved ones from additional expense and heartache while they grieve.


Did you know 48% of surveyed Americans cite covering burial and other final expenses as the major reason to own life insurance?


 4.RETIRE DEBT: Many types of debt such as mortgages and other loans that you and your spouse applied for jointly will become their responsibility upon your death. Other potential scenarios can lead to creditors trying to collect against your estate, which could retire debt, but lead to less money being left for your loved ones. Life insurance can be used to create liquidity to help pay off outstanding debt.


The average American has $52,940 worth of debt across mortgage loans, home equity lines of credit, auto loans, credit card debt, student loan debt, and other debts.

 5.PERSONAL ACCUMULATION: Creating a personal plan using cash-value life insurance can give you and your family tax-free access to the cash value of your policy at any time, for any use. It may also provide financial resources, if sufficient cash value has been accumulated, and the freedom you need to address life’s little what-ifs. A Personal Accumulation Strategy using a cash-value life insurance policy may provide you with a flexible source of cash for things like a major purchase, a vacation fund, or an emergency fund for life’s unexpected costs.

 6.PROTECT YOUR BUSINESS: If you are a business owner, you may want to ensure that it succeeds long after you are gone, or make sure your spouse or family receive equitable compensation from your business partners for your share of the business. As with any type of financial planning, adequate preparation is necessary to facilitate a smooth transfer of ownership and ensure the business continues to operate without disruption.

 7.PAY FOR COLLEGE: Of the many ways to save and pay for college, life insurance should not be overlooked as a complementing or alternative strategy. Many types of permanent life insurance policies, such as whole life or various types of universal life, build up cash value that can be used for any purpose, such as paying for college. Policy loans can be used to pay for college expenses, room and board, and other needs as well. Another benefit of using permanent life insurance to save and pay for college is that the cash value is generally excluded from certain financial aid calculations.

The average cost of attendance for a student living on campus at a public four-year in-state institution is $101,948 over four years. Average traditional private university students spend a total of $212,868 over four years.

 8.CASH VALUE ACCUMULATION: There are many options for planning and saving for retirement, including 401(k)s, IRAs, and annuities. Although life insurance is most commonly associated with death, the right type of policy may complement other retirement savings strategies. For individuals who have already maxed out other retirement account types or are not eligible to contribute to a Roth IRA due to income limitations, but are looking for additional ways to save, a permanent life insurance policy might be the answer. Whole life, universal, and variable life policies, systematically build up cash value, as policy owners make premium payments into the policy, which can be accessed to supplement retirement income, through loans and withdrawals.

Only 27% of surveyed workers “feel very confident” they will be able to retire comfortably.

 9.ESTATE PLANNING: Estates that are large enough may be subject to a hefty federal estate tax bill with a top rate of 40%. life insurance can be used to generate sufficient liquidity to cover these additional costs and can also be used to create an immediate estate for your beneficiaries upon your death. Life insurance passes to your heirs via beneficiary designation, bypassing the time, cost, headache, and public nature of the probate process. Moreover, death benefits generally pass to your heirs free of income tax.

Ultimately, leveraged alongside the protections of a will or trust, life insurance can ensure that a lump-sum death benefit will be available to effectively transfer wealth to your heirs

 10.CHARITABLE PLANNING: Life insurance can transfer an “amplified” gift to your favorite charity when you make the charity the beneficiary. A relatively small amount in the total value of premiums paid in relation to the final value transferred to the charity, can translate into an extremely large and meaningful gift, as compared to what the charity might receive through an otherwise, non-life insurance gift. Finally, life insurance passes via contract law, bypassing the time, cost, headache, and public nature of the probate process, so the charity gets to start putting your gift to work right away. / / 732-860-0410

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