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I’m single. Do I really need life insurance now?

Posted November 20, 2013 in Advice Column, Ankeny

Whether you are single or married, your death will create a financial burden for your loved ones. However, you can lessen this financial burden with a life insurance plan.

Life insurance provides a death benefit that can help pay funeral costs, medical expenses or any outstanding debt. In addition your named beneficiary can receive your death benefit promptly after your death without paying income taxes on the proceeds.

Permanent life insurance offers a cash value in addition to the death benefit. This cash value is a sum in the contract that usually increases through the years on a tax-deferred basis under current tax laws. As your life changes, you may decide to draw on this cash value to help purchase a home, start a business or supplement your retirement income.

How can I keep my family in its home if my spouse or I die?
That’s an important question, especially since most families depend on one or both pay checks to make the mortgage payment today.

Life insurance can help assure your family remains in its home if you or your spouse die.

Permanent life insurance, in an amount equal to or greater than the mortgage, can provide funds needed to pay off the mortgage if you die prematurely. As your mortgage balance decreases, the proceeds from your permanent life insurance contract can be used to help pay off the mortgage, cover final expenses or provide an income for your surviving spouse and family.

How often should I review my life insurance coverage?
What’s most important to you and your family in life may change over time. That’s why it’s necessary to periodically review your life insurance plan. You want to make sure your plan adequately covers your needs.

You may decide to review your life insurance plan annually with your local life insurance representative. If not, it’s important to review your plan when significant events occur in your family’s lives.

These events may signal the need for a life insurance review:
•    Recently married
•    Become a parent
•    Suffered a death in the family
•    Retired or nearing retirement
•    Children enrolled in high school or college
•    Paid off a loan
•    Bought or sold a house
•    Changed jobs or recently promoted
•    Changes in employee benefits
•    Enjoyed a financial gain
•    Interested in strategies to reduce potential estate taxes
•    Taken out a loan
•    Children are now financially independent

Remember, life insurance is the one product your family can count on for death benefit protection.

Information provided by Modern Woodmen of America for John Baumhover, FIC, CFFM, Regional Director Iowa South Region, 201 S.E. Shurfine Drive, #1, Ankeny, office: 515-289-4060, cell: 515-480-251.





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