LIFE INSURANCE
Why should I buy Life Insurance?
Many financial experts cosider life insurance the cornerstone of sound financial planning. It can be an important tool in the following situations.
 Replace income for dependents.
No one ever wants to answer “what if?”. What if I die and my children and/or spouse were dependent on my income? Will the death of a husband and a child's father impact their lives at a time when they are already have a lot to deal with? Will the children be able to attend the college of their choice?
These are questions you need to ask yourself when considering the value of life insurance and whether you need life insurance. Life insurance can replace an income when you lose a loved one, or act as a bridge income while your family has time to determine what to do next.
If you are the financial provider for a spouse/partner, or a dependent adult, such as; parents, siblings, adult children life insurance can be very important especially when your death means a lose of supporting income.
Pay final expenses.
Life insurance can pay your funeral and burial costs, probate and other estate administration costs, debts and medical expenses not covered by health insurance.
Create an inheritance for your heirs.
Even if you have no other assets to pass to your heirs, you can create an inheritance by buying a life insurance policy and naming them as beneficiaries.
Pay federal "death" taxes and state "death" taxes.
Life insurance can pay estate taxes so that your heirs will not have to liquidate other assets or take a smaller inheritance. Changes in the federal "death" tax rule between now and January 1, 2011 will likely lessen the impact of this tax on some people, but some states are offsetting those federal decreases with increases in their state-level "death" taxes.
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