50 .
1. Family protection. People are starting families later, and many 50-year-olds still have children at home. Life insurance can help provide for lost income, help protect your family from losing your home, help pay your children’s way through college, and allow your spouse to take time away from work to care for your family’s needs. At age 50 or older, term life will generally be the most affordable option for getting the death benefit needed to help ensure your family is provided for.
2. Coverage for final expenses. These policies are designed specifically to cover funeral and death-related costs, but nothing more. They have a low benefit amount can be affordable, even for those in their 60s and 70s, and they typically don’t ask health questions or require a medical exam. Funeral costs often run over $10,000, and there may also be final medical and/or hospice costs after you are gone. A final expense policy can help take these financial burdens off your family – but they won’t help replace income for your financial dependents.
3. Business protection. If you own or are a partner in a business, having a business continuity plan in place can be critical to ensure that the business is taken care of. Whole life insurance can help provide the capital needed to buy a deceased owner’s interests and protect the business against the loss of a key person’s services, expertise, and skills. Life insurance can help address four major areas of business planning:
- The funding of buy-sell agreements and stock redemption plans
- The funding of supplemental retirement programs
- Key person indemnification
- Payment of loans and mortgages
4. Pension replacement. If your pension stops when you die, getting life insurance coverage can help cover your spouse’s ongoing financial needs. However, term life insurance should typically not be used for this purpose because if you outlive the policy term, there is no protection for your spouse.
5. Estate planning. By planning for the orderly transfer of property after your death, you can help minimize taxes and provide for heirs in a way that reflects your desires. Permanent life (whole or universal) can play a key role by offering:
- Liquidity to help pay inheritance and estate taxes
- Assets to help provide income for a surviving spouse and children
- Estate equalization among heirs
- Funding for special needs children
Estate tax liabilities can erode a decedent’s assets. If there is no kế hoạch in place mập pay these taxes ( for example, by using life insurance proceeds ), survivors could kết thúc up selling off other assets such as retirement investments or even precious family heirlooms phệ come up with the money. And unfortunately, when such assets are sold in this manner, it is often far below market value .
6. A charitable remainder trust. If you’ve built a successful business or investment portfolio, there can be enormous capital gains taxes when those are sold for retirement income. At the same time, you may want to support charitable causes that reflect your interests. Whole life insurance can help do this. With a charitable remainder trust, these two diverse needs can come together in a strategy that helps provide:
- Lifetime income
- A charity bequest
- Potential avoidance of capital gains tax
- Potential income tax deductions
This can help make it possible lớn achieve your charitable goals while maintaining a significant legacy for your heirs .
7. Saving for Retirement. As mentioned, permanent life policies build cash value with tax advantages, which can help pay for retirement. For someone close to retirement, adding permanent life to supplement your retirement can be a way to diversify your portfolio.
Source: https://livesharewiki.com
