Learn HOW LIFE INSURANCE MIGHT APPLY TO YOU
- Empty Nester
- Small Business Owner
Many Americans believe they don’t need to think about life insurance until they have children. This is not true. What if you or your spouse died tomorrow? With your income, would you have enough to pay off credit card balances and car loans? How about covering monthly rent and utility bills? If you’re planning to have children, you’ll want to buy life insurance now instead of later.
You’re Married With Kids
Families today depend on two incomes to make ends meet. What would happen if you suddenly died? Could your family continue meet all financial obligations—paying rent or the mortgage and daily living expenses? Could your family continue its standard of living on your spouse’s income alone? What about your children’s future? Life insurance helps ensure that plans for your family's future don’t die when you do.
You're a Single Parent
You wear many hats. You’re the income provider, caregiver, cook, chauffeur and so much more. Unfortunately, four in 10 single parents have no life insurance, and many with coverage say they need more. With so much responsibility, it's important that sufficient life insurance has been purchased to safeguard your children’s financial future.
You’re a Stay-At-Home Parent
Even though you might not earn a salary, you are an integral part of your family. Childcare, transportation, cleaning, cooking, and other household activities are all important tasks, and the replacement value is often severely underestimated. With life insurance, your family can afford to make the choice that best preserves its quality of life.
You Have Grown Children
Your kids have graduated from college and the mortgage is paid. The need for life insurance still exists! If you die today, your spouse will still have daily living expenses. Would your financial plan, without life insurance, enable your spouse to maintain the quality of life you’ve worked so hard to achieve?
Depending on the size of your estate, your heirs could receive an estate-tax payment of up to 45% after you die. Because life insurance proceeds are immediately payable, heirs can take care of incurred taxes, funeral costs and other debts without having to quickly liquidate assets. Life insurance proceeds are also generally income tax-free1 and won’t add to your estate tax liability, if properly structured.
1 Estate taxes may apply to insurance proceeds. The tax information contained herein is general in nature, is provided for informational purposes only and should not be construed as legal or tax advice. Catholic Order of Foresters does not provide legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation.
Besides caring for your family, life insurance can protect your business. What would happen to your business if you, a fellow owner or a key employee died tomorrow? To protect a business in case of the death of a key employee, key person insurance, payable to the company, provides the owners with the financial flexibility needed to hire a replacement or determine an alternative arrangement. A life insurance policy can be structured to fund a buy-sell agreement. This helps ensure that the remaining business owners have the funds to buy the company interests of a deceased owner at a previously agreed upon price. This helps ensure the owners get the business, the family receives the money, and the business continues.
While many single people don’t think they need life insurance because they have no dependents, there are exceptions. Some single people provide financial support for aging parents or a sibling with special needs. Others may be carrying significant debt that they wouldn’t want to pass on to family members. If you’re young, healthy and have a good family health history, you’ll generally receive better life insurance rates than if you wait until you’re older, when the liability increases.