IMOR Financial - Why Life Insurance

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Long-Term Care Insurance

Why Life Insurance

It's simple: life insurance provides money to the beneficiaries that you choose. After you pass away, life insurance helps your loved ones with the money they may need to pay for funeral expenses, college tuition, eliminate debt, or provide inheritance for the family.

In life, we have many financial goals and milestones to prepare for: purchasing a home, paying for college, and saving for retirement. These are all big, planned expenses that we are aware of early on. But there are other big and unexpected events in our lives, too.

Life insurance is one of the options available for building up financial security to protect our family, loved ones, and maybe even a business before and after an individual’s death. Only 60% of Americans have life insurance and one in five policyholders do not feel sufficiently insured. (Insurance Information Institute) 

There are many reasons why life insurance is so important for one’s financial future.

Paying off debt.

We all acquire some level of debt in our lives - such as mortgages and student loans - but credit cards are the most common form of debt that is a part of a financial plan. In fact, the average American has around $6,200 in credit card debt (USA Today), and Americans hold four credit cards on average, according to the credit bureau Experian. When someone dies before outstanding debt is paid off, money that’s owed may become a financial burden on the family, heirs, and the estate.

Leaving an inheritance.

Lots of work goes into making and saving money. Life insurance is one method to create inheritance that is NOT taxed before reaching the beneficiary or heirs. There can be multiple beneficiaries on life insurance policies and contingent beneficiaries can be named to receive the death benefits if the primary beneficiary passes away. When someone dies, loved ones may have to settle their affairs and plan a funeral while grieving the loss. Including end of life expenses in life insurance can spare loved ones and family from financial stress during heartache.

Planning for retirement.

There are a variety of ways to prepare for retirement. Many people will associate life insurance with death, but it can also be a good fit in the planning of retirement. Life insurance often has incorporated within it a “savings” feature, known as cash value. The cash value can be withdrawn or taken as a loan to supplement income during retirement and can also be put toward long-term care. Nearly 70% of people who live past age 65 can expect to need some form of long-term care ( Life insurance can secure funding for medical and non-medical care in the event of an illness or disability and make differences in your quality of life.

Protecting a business.

If an owner or partner passes away, their employees and other business partners could be left with nothing. Life insurance can provide financial certainty and be an asset to a business. It can also provide cash to keep the business going while things get settled.

Preparing for the unexpected.

Wisdom says to have a rainy day fund to help prepare for an unexpected event like losing a job or when your car breaks down. Types of life insurance can protect for damages to your home and your valuables, but there is no price that can be put on someone’s life. Death is one of life’s uncertainties, and life insurance is a tool for having a financial plan in place when death happens.

To get more information about life insurance during Life Insurance Awareness Month or any other time, email Vickie at This email address is being protected from spambots. You need JavaScript enabled to view it. or call her at 717-790-2171.


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