by Debra Gillum
Why do you need life insurance? Simple answer: to PROTECT your loved ones. If something happened to you tomorrow would your children and/or spouse be burdened by your unpaid home/car/personal loans? Can your children afford education expenses? Will your credit card debt be taken care of? Is there enough money for childcare? Are your funeral expenses covered? These are only a few of the questions you must ask yourself. If you are a stay at home mom or a single mother working 3 jobs it is equally important to have adequate coverage to protect your loved ones.
There are several different life insurance options to choose from but here are a couple of basic definitions.
Whole Life Insurance - Life insurance that insures you for your “whole life” and pays a cash benefit to your chosen beneficiaries.
Term Life Insurance - Life insurance that protects you for a certain “term.” Most policies are designed follow the life of a loan, other outstanding debt, the time period while your kids are at home, etc.
Following are a few scenarios stating why life insurance is imperative.
Single parent (one income) - Your need for life insurance is critical. You provide the only source of income and are responsible for the support and care of your children. What happens if that income is gone? You might try a term policy to cover outstanding loans and mortgage or a whole life policy to cover your children’s future and care (college, weddings, everyday care, etc).
Stay at home mom - You may think that because you aren’t bringing home a paycheck your need for life insurance is unnecessary…not true. Your services, while in many respects beyond value, are worth thousands of dollars a year. How would your husband and children manage without you? Check into a whole life policy that would provide enough money for childcare until your kids are old enough to be on their own.
Two working parents (dual income) - If anything happened to you — and the income you generate — would your family be able remain in their home? Would your children be able to achieve their education goals? Would your family suffer a severe financial loss? Term life would be able to cover any credit card debt or outstanding loans you may have in your name. A whole life policy could provide money for your child’s future and everyday items and bills that are dependent on your paycheck.
Single or Married, No children - You may think with no children there is no one you need to protect. Who will take care of your outstanding debt? Who will cover your funeral expenses? You should see about a term life policy to protect loans in your name and a whole life to cover funeral expenses, your part of the bills, any suffered income, etc.
Keep in mind that everyone’s situation is different and these are only suggestions and questions for you to use in evaluating your own circumstances. Talk to your life insurance agent to find the right policy for you.
Debra Gillum resides in Texas and is a Germania life insurance agent for Gillum Insurance. For Texas residents considering life insurance, contact Debra : debra@gilluminsurance.com or http://www.gilluminsurance.com
