Top 10 Reasons to have Life Insurance

The need for life insurance can be broken down into three basic reasons: You die too
soon, you live too long, or you unexpectedly become ill.

These general reasons have been broken down even further to create the top 10
reasons to obtain life insurance:

1. Income replacement

Upon your death, a life insurance policy’s death benefit can cover the income you bring to your family. If one providers dies, whether an income (working outside the home) or time (stay at home parent caring for children) provider, that contribution needs to be replaced.

2. To cover burial and final expenses

When a loved one dies, no one wants to worry about funeral costs or bills. Earmarking a portion of the death benefit or having a final expense policy is always a good idea, even if you don't need the income replacement.

3. Mortgage protection

Many people figure out how much life insurance they need by how much they owe on their mortgage. For example, if someone has a $250,000 mortgage with 20 years left, they want to make sure their life insurance will cover that mortgage, so they may take out a $500,000 policy with half earmarked to cover off the mortgage and half as income replacement. The amount will depend on your age, the age of your children and the amount of your mortgage.

4. Locking in your age and health

You're only as young and healthy as you are today. The best way to get a low premium is to lock it in at a young age and when you’re in good health.

5. Transferring wealth

Leaving money to your family within a life insurance policy as part of your estate is a good way to protect your assets and transfer your wealth to your family as the beneficiaries.

6. Tax advantages

Life insurance can build up cash value. Within an IUL, UL, or a Whole Life policy, you have the potential to build up cash value that could be used as a tax advantage.

7. College education fund

A death benefit can help to ensure that college or college loans are paid for even if the policyholder is no longer around.

8. Evolving product options

Revisit your life insurance with an adviser because things change - your 30 year mortgage becomes a 10 year mortgage and your kids are out of college, so you may no longer need a term policy but you may wish to invest in a cash accumulation policy so you can have a second tax free income stream.

9. Employer provided life insurance policies

Take a close look at employer provided life insurance policies because they may not adequately cover your family's needs and usually do not transfer so if you are terminated from an employer your life insurance policy usually does not come with you.

10. Pay estate taxes and create estate liquidity

When an estate is inherited, income taxes have to be paid - life insurance can step in and cover those costs. Many people, especially those with a high net worth, use life insurance to help their beneficiaries pay estate taxes.

Obtaining life insurance as soon as possible and continuously revisiting your life
insurance policies and options is in your best interest and your family’s interest. Make
sure your dreams and goals are brought to fruition, whether you're here or not.
Insurance premiums on individual life insurance policies are generally based on the type
and amount of insurance you buy and your chance of death while the policy is in effect,
as determined by your lifestyle habits (e.g., smoking), age, and medical

For more information, contact Beacon Financial Group to speak to an
experienced, licensed advisor: 908-769-4333




-The information contained in this article is for general information only. It is not intended to provide
specific advice or recommendations for any individual and does not constitute an endorsement by
-Insurance guarantees are based on the claims-paying ability of the issuer.
-Policy loans and withdrawals will reduce the policy's cash value and death benefit. Loans are subject
to interest charges.