Life Insurance – The Big Picture

As we look ahead to Spring, you can continue this “month of love” theme throughout the year by taking inventory of your financial assets. February is considered a month to show love to those you care about. A great way to do that is to consider the pros and cons of life insurance. Life insurance can give you peace of mind, knowing your loved ones will be cared for when you are gone.

Life insurance is often a topic we avoid discussing or investing in, but it is vital for financial planning. When considering your assets and liabilities, life insurance can alleviate the financial worry of debts or funeral costs for your family. As more people live longer, healthier lives, the number of centenarians is reaching unprecedented levels. Recent medical research advances and an emphasis on healthy lifestyles contribute to this trend. It’s important to ensure your finances are equipped to handle these extra years.

A few suggestions can guide you in finding what suits you best. Personal finance expert and author Dave Ramsey states: “In almost all cases, you probably do need life insurance. Other than those rare and awesome situations where someone has become both debt-free and self-insured, most people need to have a life insurance policy in place.”

Who should have life insurance?

• Parents with young children under 18.
• Couples facing debt or financial instability if one income is lost.
• Young adults and singles who have debt. It will help those who will be responsible for those debts.
• Mortgage holders who want to provide security for their family. Life insurance gives “the beneficiaries the ability to keep the house payment paid and prevent the second tragedy of being forced out of their home while grieving.”

Who may not need life insurance?

• Couples or individuals without dependents who possess enough wealth to meet their financial obligations.
• Older adults with grown children, pre-paid burial plans, and no mortgage or debt to leave behind for beneficiaries.

How does life insurance help?

• Beneficiaries can …
  • Cover end-of-life expenses
  • Pay a mortgage
  • Maintain living expenses
  • Cover college tuition for children
  • Pay off credit card debts or auto loans.
• Protects your children and spouse financially.

According to Bankrate.com, “Thirty percent of Americans surveyed acknowledge their need for life insurance but don’t have any.” The number one reason people forgo insurance is due to high premiums, yet there are opportunities for savings.

• Pay a year of premiums at once
• Buy earlier in life
• Maintain a healthy lifestyle
• Keep a good driving record
• Quit smoking
• Limit risky hobbies or behaviors

Insurance Group of the Ozarks has trusted agents who can answer your questions and find options for your specific needs, either by phone, email, or in person. Call 417-725-1131 or visit us online at igotozarks.com/life-insurance.