Caring, responsible people buy life insurance because they love someone or they owe someone. A liability should never outlive the person who created it.
If your death will create an economic loss for your family, your business, your estate, your community, your church or temple, your college, or your favorite charity… you probably need some life insurance. If your death will not create an economic loss for one of those entities, you might want to ask yourself why it won’t.
When you die, there are certain problems for which insurance is the best solution:
Will your family have an adequate income to enable them to remain in the world that you have created together? Will your family have an adequate cash cushion for emergencies and other cash needs?
Estate Tax Funding
What are the projected taxes? What impact will estate taxes have on your family and business? Will estate taxes necessitate the forced liquidation of valuable growth and income producing assets?
Would you like to leave something to a relative or a friend? Would you like to leave something to the community which helped you become successful? Would you like to leave something to your favorite charity?
Buy Sell Funding
Do you want your family involved in the business in the event of your death? Would you like them to be bought out for cash or would you prefer they recieve an annual income from the business… or both?
Key Person Loss
Will there be an adequate cash cushion to offset the impact on sales, profits, credit lines, and retirement plans?
What are you doing in terms of providing selective benefits for yourself and other key people?