5 Reasons Why You Need to Have Life Insurance ?

  1. It’s a lot less expensive than you think. Most policies for those that are under 30 years old can start at as little $35.00 per month for a million dollar policy! That is more than most of us pay for the gas in our cars! We advise our clients to start as soon as possible to lock in the lowest rate possible. Then , set up an automatic payment from your bank account and forget it. It is such a nominal regular expenses that you wont even notice you’re missing it .
  2. Like most of us, you have debt . Having a life insurance plan in place will allow for your debt to be paid off completely as long as you acquire the sufficient amount of insurance required upon your passing. This will eliminate any financial burdens of your family. It will also position your family to be able to utilize those assets ( whether it be a home, equipment, land, etc) as collateral for an equity or personal low interest loans to finance business ventures or fund other lucrative investments.
  3. You will be passing on a tangible financial legacy that has the potential to influence generations to come! Life Insurance policy proceeds can be used not only to cover the expenses that result from an untimely passing. They also provide a capital base to its beneficiaries. This capital base is extremely beneficial to families who do not have access to capital through the capital markets , inheritance, or trust fund vehicles.It is an asset that can be used for a collateralized loan which provides low interest funding. If its is a whole life policy, it can also be redeemed for its cash value after a specified term.
  4. It is a hedge for your investment portfolio . Our Financial advisors include life insurance as a hedge for clients who are the breadwinner’s of their family or those who have a long term investment strategy where they are invested in an industry that is capital intensive such as real estate and entrepreneurship. Additionally, business owners who pose key man risk and have longer term loans that exceed 150K would benefit significantly by hedging their debts using a life insurance policy.
  5. It increases your wealth. From an accounting perspective, life insurance policy is an asset to you and a liability to the insurer. Its value is included on your personal financial statement which informs lenders that you have taken the steps to become financially secure and stable. It also communicates that you have contingency plans in place should an untimely death occur that would ensure your debt is paid accordingly. These attributes will position you as a qualified candidate for business opportunities, greater access to capital, larger loan values, better rates, and lending terms.