September is Life Insurance Awareness Month – A month to educate people about the importance of having life insurance.
According to US News, “if you have dependents who rely on your financial support, life insurance is worth considering to ensure they are protected.”1 Life insurance is designed to provide financial support after your death. It’s not something anyone likes to think about, but it can provide peace of mind for your family in the event of your passing.
What Do You Need Life Insurance For?
Income Replacement – Over half of households rely on a dual income to maintain their lifestyle. The LIMRA’s Life Insurance Barometer Study found that “42% of respondents would struggle financially within six months after losing an income while 25% would only last one month.”2
End-of-Life Costs – The National Funeral Directors Association estimated the average funeral and burial cost at $7,848 and cremation at about $6,971.3 These are large expenses your family may not have at the time of your passing.
Inheritance or Charitable Donation – Some people would like to leave money for loved ones or your church or favorite charity. Be sure to designate your wishes in writing.
Protection for Business Owners – If you own a business, your policy’s death benefit may be used to cover payroll or other operational expenses.
Investment Diversification – Permanent Life Insurance policies have a cash value component that grows tax-free. While they offer a conservative return, it is a great way to diversify your portfolio.
Estate Taxes – In the event you are leaving substantial assets to your beneficiaries, understand the tax burden. Your policy can provide a solution for large estate taxes.
Our advisors can help you determine how much life insurance you need to cover the above costs. Find an advisor at APAdvisors.com and utilize our life insurance calculator to get an estimate of your needs.
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