Most CFP’s, (Certified Financial Planners) believe that life insurance should be the first item on your agenda when packaging together a sound financial plan.  Life Insurance should be considered to help with the following list of critical issues.  Have you reviewed your life insurance policy?  Are your beneficiaries set up correctly?  Do you have enough insurance for your family?  What are the tax implications with your life insurance plan?

1.  Income replacement for your family

Does your family depend on  your income?  If so, life insurance can replace that income for them when you have a life event.  Do you have young children?  What would happen if they didn’t have your income anymore?  There are many ways to look at one situation.  Whether you are looking for protection for your family, spouse, or children, be sure to secure enough life insurance for their future needs.

2.  Final expenses

In some instances Life insurance can pay your funeral and burial costs.  (FINAL EXPENSES) If you are not planning for your family regarding income replacement, then you might want to just get a basic policy that will help with basic life burial costs, or other costs that your health insurance do not cover.  You can most likely buy a small policy with $10,000 – $20,000 of coverage for a nominal premium.  You then will not place the burden on your family for these costs. 

3.  Create a LEGACY for your heirs

Some families retain wealth over decades because they know what the value in wealth transfer.  With the tax advantages life insurance offers, it is silly not to use it.  Do you have  other assets to pass to your heirs?  That is great if you do… Make sure your assets aren’t to big or you will most likely need to buy life insurane to make up for your estate taxes.   You can create an inheritance by buying a life insurance policy and naming them as beneficiaries.

Here are ust a few reasons why you should buy life insurance.  No matter what your current financial situation is.  Be sure to consult your life insurance planner to get set up with the life plan that makes sense for your situation.