Stephanie Chisolm: Hi! I'm Stephanie Chisolm a Wells Fargo team member. Today we're discussing why you may need to consider purchasing life insurance.
Life insurance pays a predetermined amount of money to the beneficiaries listed when the policyholder dies. The funds can be used for specific purposes such as living expenses, debt reduction, and payment of medical costs or final expenses.
Fortunately it doesn't have to be expensive to purchase life insurance, particularly term life insurance which covers you for a period of time without the risk of an increased premium. Having a properly designed life insurance policy at the time of death can allow your family to focus on emotional healing, without having to worry about financial issues.
If your family or loved ones rely on your financial support, life insurance is an excellent way to help make sure they maintain the lifestyle they are accustomed. It's also important that you help your loved one's reach their financial goals whether it's by helping them save more or making sure your children have the funds they need for college.
There are many other reasons to consider having a life insurance policy. Such as tax planning, taking care of funeral cost, or providing for a charitable cause, that is important to you.
Life insurance can be a useful tool in a state planning; it can also be used for business continuation purposes. Talk to a financial professional about the details of how a life insurance policy can be used in a financial plan.