ASSESS YOUR NEED FOR LIFE INSURANCE

Benjamin Franklin once said that the only sure things in life are death and taxes. Interestingly, this adage can be applies to what happens after you are gone. Your loved ones will be dealing with both — the void in their lives without you and possibly paying the government for any sort of inheritance you may leave them. But you have everything worked out, right? Maybe you should think about life insurance.

Choosing the right type and amount of life insurance is key to a sound financial plan for many people—but how can you determine whether you need it? The Insurance Information Institute (www.iii.org) offers these reasons for obtaining life insurance

– If people depend on your income, life insurance can replace that income for them if you die. The most commonly recognized case of this is parents with young children. However, it can also apply to couples in which the survivor would be financially stricken by the income lost through the death of a partner, and to dependent adults, such as parents, siblings or adult children who continue to rely on you financially.

– Life insurance can pay your funeral and burial costs, probate and other estate administration costs, debts and medical expenses not covered by health insurance.

– Even if you have no other assets to pass to your heirs, you can create an inheritance by buying a life insurance policy and naming them as beneficiaries.

– Life insurance benefits can pay estate taxes so that your heirs will not have to liquidate other assets or take a smaller inheritance.

– Some types of life insurance create a cash value that, if not paid out as a death benefit, can be borrowed or withdrawn on the owner’s request.

Maybe it’s time to sit down with your insurance professional and talk about how you can best provide for your loved ones after you are gone. Maybe life insurance is something that will help you rest easy knowing your family will be well taken care of.