We have all looked at a loved one and in a quiet moment thought to ourselves, “What is life insurance for?” They fill our lives with joy and laughter. That’s probably why the saying “Life, Laugh, Love” is so meaningful to most. Loss is another meaningful word. One we don’t like to dwell on but it is through such loss that we experience pain. Without those devastating experiences in life, we’d have nothing to compare the good times to, and no way to know what a gift they truly are.
Life insurance is not a way for your family to become wealthy and better off upon your death. Life insurance is however a gift from you to them to show that that even after death, you are there to help provide for them. It can ease the insecurities and fear of complete financial ruin now that you and your income are no longer there to support your loved ones. Helping with the question they have, “What will we do without you?”
What does life insurance for?
- Pay Final Expenses
The cost of a funeral and burial can easily run into the tens of thousands of dollars, and we don’t want spouses, parents, or children to suffer financially in addition to emotionally.
- Cover Children’s Expenses
Parents want to be sure their kids are well taken care of and can afford a quality college education. While children are still at home, it is a good idea to have additional coverage for just that reason.
- Replace the Spouse’s Income
If a spouse passes away while children were young, there is a need to replace their income, which is essential to maintaining the lifestyle. This money could also be used to hire domestic help to perform tasks like cleaning the house, laundry, cooking, helping with schoolwork, and getting kids to doctor’s visits.
- Pay Off Debts
In addition to providing income to cover everyday living expenses, the family would need insurance to cover debts like the mortgage so they wouldn’t have to sell the house. Losing you and then everything else soon after would be devastating. The family would not feel safe or secure.
- Pay Off Estate Taxes
The use of this insurance is most common in large estates through permanent, rather than term policies. Estate taxes can be steep, so having insurance in place to pay them is essential to avoid jeopardizing assets or funds built for retirement. Helping to ensure that coverage remains until the end of life.
Sydney IS helping clients find just the right level of coverage for your current income, possible future income, overall debt and the dreams we all hope to help our children attain. Let Sydney Insurance Services guide you through this process.