Now is a great time to review your life insurance policies and determine if you have enough coverage. When someone we know passes away, often, we are reminded of how precious life is and how financial stability can rapidly change. In many instances, all they had was the coverage provided by their employer, which isn’t enough.
In addition to reviewing assets and recommending strategies to protect your family or building wealth, financial planning also considers all aspects of risk, including death. Depending on your situation, your financial professional may recommend life insurance. Here are some common reasons to consider why you may need life insurance:
Provide for your loved ones – families with dependent children need to plan for the loss of income if a parent dies. Our founder is passionate about helping families with dependent children due to the death of her father, the breadwinner who passed away when she was 3 years old. The financial devastation to her family could have been avoided if her parents had life insurance. A stay home parent also has economic value to the family since replacing all of the services that they do for “free” cost several thousands of dollars to replace.
Estate Planning – If you have a large estate and want to ensure your beneficiaries do not have to liquidate assets to pay estate taxes, life insurance can be used for this purpose. Estate planning is essential for any individual who has a family, owns a house, owns a business or has significant assets to ensure their assets are divided according to their wishes. A comprehensive plan with a will and trust are preferrable to avoid unnecessary probate and attorney fees. Brightside Financial offers the #1 attorney written software for estate plans that is only available through financial professionals.
Business Succession Planning – If you are a business owner and plan to pass on the business to a family member or other key employees, life insurance may be part of the new owner’s purchase plan. Life insurance, a part of the succession plan, involves a tax professional and an attorney to ensure the outcome benefits all parties involved. Using life insurance as part of the business succession often becomes part of the business owner’s retirement plan.
College Funding – if you’re a parent or grandparent, life insurance can provide part or all of the education funding for the insured child without tax consequences. Contact Brightside Financial in Argyle/Northlake to find out how cash value life insurance can provide tax free funds for college which can be used for any purpose.
Consult with Brightside – life insurance isn’t only for young families that need protection but also individuals with debt, businesses relying on crucial workers, and investors who plan to protect their assets.
Review your life insurance policies at least annually with Brightside Financial to ensure it is meeting your financial needs, your beneficiary information is up to date and your address and contact information is up to date.
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