Why do I need life insurance?
If something happened to you today, would your family be adequately provided for? Whether you have no insurance, or need to add more life insurance, Peoples First can help you get the coverage you need at an affordable rate. Get a free life insurance quote today and rest easier tonight. How do I determine how much life insurance I need? Our life insurance calculator (coming soon!) can help you determine how much life insurance is right for you. Determine the amount of life insurance you need, and then request a free quote from Peoples First. We’ll help you get the life insurance coverage you need at a rate you can afford. What is the difference between term and permanent life insurance? Term life insurance is valid for a specific time frame, or term. A permanent life insurance policy pays out upon the insured person’s death, no matter how long the policy has been open.
The answer to this question ties into the how much life insurance do I need question. Different situations call for different amounts and different types of life insurance coverage. Some of the most common reasons for a life insurance policy are to pay off any debt or mortgages, to set up a college fund for your children, and to donate money to charity.
Life insurance has several purposes. Its most important function is to replace the earnings that would cease at the death of the insured. For businesses, life insurance is a way to protect key employees and the business itself. A third purpose is to use life insurance to pay potential estate taxes. If you die during your earning years, your family could suffer a severe economic loss as a result of losing your current and future income. Unfortunately, your family would still have to pay its regular bills, the mortgage, and outstanding debts, and perhaps even continue saving for college and retirement. Unless you’re independently wealthy, achieving these goals may be virtually impossible for your family with the loss of your steady income. Life insurance offers a way for your family to continue living comfortably and without worry. Employers often purchase life insurance policies on key employees to insure against the loss of services or income that might result after an employee’s death
Life insurance is an essential part of financial planning. One reason most people buy life insurance is to replace income that would be lost with the death of a wage earner. The cash provided by life insurance also can help ensure that your dependents are not burdened with significant debt when you die. Life insurance proceeds could mean your dependents won’t have to sell assets to pay outstanding bills or taxes. An important feature of life insurance is that there is no federal income tax on proceeds paid to beneficiaries.
