Should I buy Life insurance?
Many experts have agreed that Life insurance could be necessary for your sound future. It can be an important tool for your finances for the following situations:
1. Replace income for dependents.
The most common example is parents with young children. If something happens to the parents where will money come from?
Also, anyone who has government assistance or workers sponsored benefits which may reduce if your partner dies.
2. Final expenses (clear your tab).
This can range from your burial costs, medical bills not covered by insurance, estate administrative costs, personal debts.
3. Create inheritance for all your heirs
This is an easy way to give something to your heirs, even if you have no assets to give.
4. Federal and State Taxes
While we have had rules passed to lessen federal taxes, some states are offsetting these taxes with state taxes.
5. Create a source of savings
You can borrow on your life insurance if it is not paid out as a death benefit. Buying a cash-value type policy can create a kind of “forced” savings plan. Also, the interest credited is tax deferred (and tax exempt if the money is paid as a death claim)
6. Make charitable contributions
By making a charity the beneficiary of your life insurance, you can make a much larger contribution than if you donated the cash equivalent of the policy’s premiums.
ABM is your perfect stop for all Insurance needs. Call us at 1-800-362-2809 to speak to one of our experts