A Tragic Story of Life and Unprotected Death
Your life is vital. Especially to your family. You have to make sure they stay protected for the length of your stay on earth.
Consider the following scenario:
A dedicated family man, Ken, with a wife, young daughter and two sons works diligently at his job as a Marketing Manager for a major wholesaler in Boston. As a perk, he is provided with three times his annual salary as company paid life insurance. This comes to about $180,000 worth of coverage. Ken knows he needs more but never gets around to purchasing it. He’s as healthy as a Clydesdale!
Unfortunately, Ken loses his job and the related benefit. He is 43 years old. In his struggle to find a new job, Ken loses sight of and ignores life insurance. While coming home from a late evening dinner, Ken is struck by a drunk driver and killed. The driver had six previous drunk driving arrests and no insurance.
How will Ken’s family rebound? How will his mortgage be paid? Who will pay for his children’s college education? Will his family be forced onto public assistance? In a blink, this incident altered their lives. And they have no protection and no income.
Do not allow his to happen to the family members you love. Talk to one of our experienced and empathetic life insurance professionals at Rizzo Insurance today. We will suggest an affordable life insurance plan that will provide you and your family with precious peace of mind.
Why should I buy life insurance?
Many financial experts consider life insurance to be the cornerstone of sound financial planning. It can be an important tool in the following situations:
- Replace income for dependents If people depend on your income, life insurance can replace that income for them if you die. The most commonly recognized case of this is parents with young children. However, it can also apply to couples in which the survivor would be financially stricken by the income lost through the death of a partner, and to dependent adults, such as parents, siblings or adult children who continue to rely on you financially. Insurance to replace your income can be especially useful if the government- or employer-sponsored benefits of your surviving spouse or domestic partner will be reduced after your death.
- Pay final expenses Life insurance can pay your funeral and burial costs, probate and other estate administration costs, debts and medical expenses not covered by health insurance.
- Create an inheritance for your heirs Even if you have no other assets to pass to your heirs, you can create an inheritance by buying a life insurance policy and naming them as beneficiaries.
- Pay federal “death” taxes and state “death” taxes Life insurance benefits can pay estate taxes so that your heirs will not have to liquidate other assets or take a smaller inheritance. Changes in the federal “death” tax rules between now and January 1, 2011 will likely lessen the impact of this tax on some people, but some states are offsetting those federal decreases with increases in their state-level “death” taxes.
- Make significant charitable contributions By making a charity the beneficiary of your life insurance, you can make a much larger contribution than if you donated the cash equivalent of the policy’s premiums.
- Create a source of savings Some types of life insurance create a cash value that, if not paid out as a death benefit, can be borrowed or withdrawn on the owner’s request. Since most people make paying their life insurance policy premiums a high priority, buying a cash-value type policy can create a kind of “forced” savings plan. Furthermore, the interest credited is tax deferred (and tax exempt if the money is paid as a death claim).
With Permission Insurance Information Institute, Inc. ALL RIGHTS RESERVED