{"id":8202,"date":"2016-01-29T12:03:06","date_gmt":"2016-01-29T17:03:06","guid":{"rendered":"https:\/\/theinsuranceshop1.com\/?p=8202"},"modified":"2016-01-29T11:11:46","modified_gmt":"2016-01-29T16:11:46","slug":"why-should-i-buy-life-insurance","status":"publish","type":"post","link":"https:\/\/theinsuranceshop1.com\/?p=8202","title":{"rendered":"Why should I buy life insurance?"},"content":{"rendered":"

\"Life<\/p>\n

Many financial experts consider life insurance to be the cornerstone of sound financial planning. It can be an important tool in the following situations:<\/p>\n

    \n
  1. Replace income for dependents<\/strong>
    \nIf 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.<\/li>\n
  2. Pay final expenses<\/strong>
    \nLife insurance can pay your funeral and burial costs, probate and other estate administration costs, debts and medical expenses not covered by health insurance.<\/li>\n
  3. Create an inheritance for your heirs<\/strong>
    \nEven 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.<\/li>\n
  4. Pay federal \u201cdeath\u201d taxes and state \u201cdeath\u201d taxes<\/strong>
    \nLife 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 \u201cdeath\u201d 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 \u201cdeath\u201d taxes.<\/li>\n
  5. Make significant charitable contributions<\/strong>
    \nBy 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\u2019s premiums.<\/li>\n
  6. Create a source of savings<\/strong>
    \nSome 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\u2019s 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 \u201cforced\u201d savings plan. Furthermore, the interest credited is tax deferred (and tax exempt if the money is paid as a death claim).<\/li>\n<\/ol>\n

    Source<\/strong>: Insurance Information Institute\u00a0http:\/\/www.iii.org\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

    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 … <\/p>\n

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