A solid financial plan helps you grow the assets that will allow you to enjoy the retirement you dream about. A component of a financial plan that sometimes gets overlooked is life insurance. Life insurance serves the crucial purpose of covering your dependents in the event you pass away while they still rely on your income. A life insurance policy may exist for several years or the remainder of your life.
At Florida Financial Strategies, our independent agents will evaluate your situation to help you select the right life insurance policy. Then, we’ll connect you with a life insurance provider to get you a comprehensive plan at a great rate. Ready to begin? Call (800) 374-4858 to connect with an agent and learn more about how we can help you choose the right life insurance policy.
Who Needs Life Insurance?
Typically, those who benefit from life insurance include relatively young working people with families or other dependents. A dependent is someone who relies on another as a primary source of income, such as children, spouses, and aging parents. Even siblings may be dependents if you are supporting them financially. A life insurance policy replaces your salary after you pass away so that your loved ones can maintain their quality of life.
Those who opt for life insurance are usually the primary breadwinner in their households and have young children or spouses who rely on them. They may have children in college who have yet to graduate who still need their financial support or aging parents who need assistance with the cost of care. They may also have a mortgage and other bills to pay that could not be paid without their salary. A life insurance policy would pay your dependents a lump sum after your death so they may continue to pay the bills. Ideally, you would want your policy to provide for your family for at least 5-7 years after your death.
Who Might Not Need Life Insurance?
Although our agents can certainly help you select the best life insurance policy for your needs, not everyone needs life insurance. Those who might not need life insurance include adults whose children have moved out of the house and are self-sustaining, people who have paid off their homes, and retirees or adults who are about to retire from the workforce. Single individuals may also not need life insurance if they have no dependents.
What Kinds of Life Insurance Can I Choose From?
There are two primary types of life insurance that our agents can connect you to: term life and whole life insurance.
Term life insurance provides coverage for a specified period. These policies cover dependents if you die prematurely. If you die while the policy is in effect, your policy pays a lump sum to your dependents. You may select how long of a term you would like when you sign up for the policy. Usually, insurers offer term life policies that last 10, 20, or 30 years.
In an ideal world, your need for term life insurance would end when the term ends. The term would end at a point in your life when you have fewer dependents, such as when your children move out and begin their own lives. Term life is an excellent choice when you need life insurance to replace your income over a certain portion of your life, and for those who want the most affordable life insurance coverage.
Whole life insurance provides coverage for your entire life. A whole life policy can provide funds for your heirs to pay estate taxes upon your death. That way, the taxes won’t come out of the inheritance. If you have a lifelong dependent, such as a child with special needs, your life insurance policy could fund a trust for their ongoing care. If you want to leave heirs a sum of money when you die, but you also want to spend your retirement savings, your life insurance policy could help you make it happen. Discuss your goals with an agent today.
Trust Us to Connect You With Just the Right Life Insurance Policy
Learn how an effective life insurance policy can be a key component of a healthy financial plan. Contact Florida Financial Strategies to connect with a life insurance agent. Working as a team, your agent will advise you on the best plan to reach your financial goals.