June 2023
Financial Planning

Why Do I Need Life Insurance?

By Javier Jimenez

Life insurance can help to protect your spouse and children from large financial losses in the event you were to pass away. This important financial planning pillar can provide financial security for your family to pay off debts, pay for their living expenses, and pay for medical or final expenses.

Upon your death, the designated beneficiaries will receive the life insurance proceeds, which are generally not subject to federal income taxes.

Reasons to buy life insurance:

• Guaranteed Protection - To act as a financial safety net if you have a family, a business, or others who depend on you.

• Income Replacement - To supplement cash flow, for example mortgage payment, childcare, healthcare, college tuition, debt payoff.

• Tax-free Benefits - Generally, life insurance proceeds aren’t taxable so your beneficiaries will be able to receive every penny you leave them.

Is Life Insurance Worth it?

This depends on several factors such as your finances, your retirement goals, and the type of life insurance policy you choose. But, if you have loved ones that depend on you financially, it may be worth consideration.

Work with your financial advisor to see if life insurance makes sense. An in-depth analysis will help us determine whether adequate and appropriate resources exist to meet your family’s future financial needs.

Additional Resources: https://www.newyorklife.com/articles/six-reasons-to-buy-life-insurance https://www.usnews.com/insurance/life-insurance/how-does-life-insurance-work

If you have questions, please contact us.

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