Do I Need Life Insurance?

Ask yourself the question, Will my loved ones have to struggle financially if I was to pass away? If the answer is yes, then you should consider purchasing life insurance. This is because life insurance pays cash (usually tax-free) to your loved ones if you pass away.

Photo courtesy of Can Stock Photos by dnfstyle

After a partner dies, the grieving partner often finds it difficult to make ends meet without their partner’s contributions to the family. This includes financial contributions as well as non-paid contributions. Remember, those non-paid contributions add up to real money! According to statistics, in 2019, a stay-at-home mom or dad would have earned $178,201 if they were getting paid for their services. Life insurance will help your partner maintain the standard of living that both of you worked so hard to achieve.

Life insurance doesn’t cost as much as most people think it does. For example, a healthy 30-year-old can purchase a $250,000 20-year term policy for about $20.00 per month. Of course, prices are higher for older people, or people in poor health, if we have dangerous habits like smoking or enjoy risky hobbies like skydiving. The amount of coverage needed and the length of the term also determine the cost of the premium. Women generally pay less for life insurance than men. Additionally, term life costs less than permanent life insurance.

Term life insurance pays if you pass away during the term. The term is how long the policy lasts. Terms are often 10, 20 or 30 years. Permanent life insurance has lifelong coverage as long as your premium payments are up to date. Permanent life insurance also builds a cash value over time. You can take a loan on the cash value or use it as collateral during your lifetime. This is why permanent life insurance is more expensive than term life insurance; because it can help build wealth and be used as an investment tool.

Consider the following circumstances. If any apply to you, you may want to consider getting life insurance:

· Starting or buying a business

· Buying a house

· Getting married

· Having or adopting a child

· Becoming a single parent

· Getting divorced

· Supporting someone financially or through non-paid contributions like caring for an aging parent or disabled child

If you would like to discuss the life insurance options, please call or email us today.

Don Heath – 805-660-3413 donheath@brightstarins.com

Dawn Heath – 805-575-0462 dawnheath@brightstarins.com

Curious to find out how much life insurance you need? Try our interactive Live Insurance Needs Calculator.