Reasons to buy insurance are different for everyone. But the decision to purchase insurance is, at its core, all about providing financial security for yourself and the ones you care about. Learn why life insurance is important, and who needs it. Show
Why is life insurance important?Buying life insurance protects your spouse and children from the potentially
devastating financial losses that could result if something happened to you. It provides financial security, helps to pay off debts, helps to pay living expenses, and helps to pay any medical or final expenses. Life insurance provides cash when you need it most.Your life insurance policy can deliver a specified sum of money when you need it. Upon your death, your family will receive your policy payout immediately. And that death benefit is generally not subject to federal income taxes. For example, a $500,000 policy provides $500,000 in death benefit proceeds directly to your beneficiary. Steps in the insurance buying process:
Remember, working with a financial professional can help make this whole process easier. A financial professional can help explain the differences between types of policies, help you calculate the amount you need, and present potential options that may best suit your
needs. 6 reasons to buy life insurance.Life insurance can give you lasting peace of mind in terms of the assurance that you have provided a legacy. That’s because the right coverage can offer a valuable combination of benefits, many guaranteed by the claims-paying ability of New York Life—so that you and your loved ones know exactly what you’re getting.3 Of course, you have to make a long-term commitment to paying premiums and keeping the policy in force. Some of the most common reasons for buying life insurance include:
3. Tax-free
benefit 4. Guaranteed cash value growth
5. Dividend potential 6. Optional riders 1The life insurance death benefit is the amount that is paid when the policy is in effect and the insured dies. The insured is the person whose life is covered under the policy. Accessing the cash value of a Whole Life policy for special expenditures will reduce the available cash surrender value and the death benefit. Oregon Policy Form Numbers for New York Life Whole Life: New York Life Insurance Company is the issuer of New York Life Whole Life. In Oregon, the Whole Life policy form number is ICC18217-50P (4/18). SMRU # 1891275 Which factor would increase your life insurance need?Your date of birth is the top factor affecting your life insurance premium. There are a number of reasons why age factors into life insurance and younger policyholders pay lower premiums. As you age, the likelihood an insurer will have to pay out on your policy increases; therefore premiums increase.
Why do people increase their life insurance?By increasing your life insurance coverage, you can help to ensure they're able to pay for medical costs, even if you're no longer here to do so.
Why should a person purchase life insurance?Buying life insurance protects your spouse and children from the potentially devastating financial losses that could result if something happened to you. It provides financial security, helps to pay off debts, helps to pay living expenses, and helps to pay any medical or final expenses.
Which of the following is a reason to buy life insurance quizlet?The only reason a person would buy life insurance is to eliminate or substantially reduce the financial consequences of that person's death by providing income to his or her dependents.
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