Life Insurance FAQ

Who Should Buy Life Insurance? 10 Cases

Who Should Buy Life Insurance
Who Should Buy Life Insurance
Written by Garcia Olivia

To answer your question on “Who Should Buy Life Insurance”  you should know that life insurance grants financial aid to other beneficiaries or surviving dependents after the loss of an insured.

Now: Here are some cases of people who may require life insurance

Who Should Buy Life Insurance? #1 – Parents with Special-needs Adult Children

For children who need lifelong care and will never be self-sufficient, life insurance will make sure their requirements will be met after their parents died.

Who Should Buy Life Insurance? #2 – Young Adults Who Require to Secure in Low Rates

It’s simple, the healthier and younger you are, the cheaper your insurance premiums.

More to that,

A 20-something grown-up might buy an insurance policy even without having children if there is an expectation to have their eventuality.

Who Should Buy Life Insurance? #3 – Young Adults Whose Parents

Cosigned a Loan for Them or Acquired Private Student Loan Debt

In general young adults without dependents seldom need life insurance.

But, if a parent will be on the bill for a child’s debt after they pass away, the child may require to carry sufficient life insurance to clear off that debt.

Who Should Buy Life Insurance? #4 – Families Who Cant Carry Funeral and Burial Expenses

Hence, a small life insurance plan can grant funds to honor a loved one’s passing.

Who Should Buy Life Insurance? #5 – Wealthy Families Who Require to Owe Estate Taxes

Life insurance can grant funds to embrace the taxes and keep the complete value of the estate intact.

Take a Look:   What is Supplemental Life Insurance? 2021 Update

Who Should Buy Life Insurance? #6 – Parents With Minor Children

Look, if a parent passed away, the loss of their benefits or caregiving could create a financial disaster.

Therefore, life insurance can assure the kids will have the financial support they need until they can sustain themselves.

Who Should Buy Life Insurance? #7 – Aged Parents Who Want to Transmit Money to Adult Children Who Present their Care

Numerous adult children sacrifice by getting time off work to attend to an elderly parent who requires help.

And this help may also involve direct financial support.

Thus, life insurance can support refund the adult child’s expenses when the parent passes away.

Who Should Buy Life Insurance? #8 – Married Pensioners

Instead of picking between a pension payout that gives a spousal benefit and one that doesn’t.

Beneficiaries can choose to acquire their full payment and use some of the funds to buy life insurance to serve their spouse.

This approach is called pension maximization.

Who Should Buy Life Insurance? #9 – Businesses with Key Employees

If the loss of a key worker, like a CEO, would create a critical financial hardship for a firm, that firm may have an insurable investment that will allow it to buy a life insurance policy on that worker.

Who Should Buy Life Insurance? #10 – Adults Who Own Property Together

Married or not, if the loss of one adult would imply that the other could no longer manage upkeep, loan payments, and taxes on the business, life insurance may be a great idea.

Take a Look:   Is Life Insurance Taxable in 2021?

For example,

An engaged couple brought out a joint mortgage to purchase their first residence.

About the author

Garcia Olivia

I'm an internet geek, I like blogging especially about insurance, I worked before as an online insurance consultant, and now, I have insurancily.

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