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I’m a financial planner, and I see 5 types of people who need life insurance most


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 Summary List Placement
In my years as a financial planner, I’ve worked with many types of families on their financial plans, and I recommend life insurance to all.
Life insurance is a key pillar of a good financial plan — without it, your financial plan would fall apart in the event of your untimely death.
Those with dependents, dangerous jobs, and joint financial obligations are among the five types of people who need life insurance most.
Policygenius can help you compare life insurance policies to find the right coverage for you, at the right price »

I have been a financial planner for quite some time. I have worked with many families to develop financial plans, and at the core of each and every one of them is life insurance.

That’s because life insurance (and other appropriate forms of insurance) serves as the “fail-safe” that provides the funding needed to carry out the financial plan in the event of an unexpected death. Without this fundamental pillar of protection, any financial plan is at best a “cross your fingers and hope” wishlist.

Simply put, life insurance is like an American Express card — you should never leave home without it.

In my many years of having the life insurance discussion, I have come to identify five primary types of people who need life insurance most:

Individuals with financial dependents
Individuals who have entered into joint financial obligations with others
Individuals who have financial plans in place for the benefit others
Individuals who have a predisposition to adverse health conditions (due to heredity or genetics)
Individuals with dangerous jobs

1. Individuals with financial dependents

The first category of people who absolutely need life insurance are those with dependents of any kind. This includes some of your usual actors — married couples where one spouse is the breadwinner, or a single parent.

Another typical but less known candidate includes homemakers, as their untimely death can create unforeseen costs for childcare. Other candidates can be married or single family members who support elderly parents or other loved ones.

Lastly, candidates can include benefactors who consistently and significantly support causes and organizations that are dear to them. 

2. Individuals with joint financial obligations

Joint debts entered into by spouses are a prime example here. If you and your partner own a home together, get life insurance — it will cover your housing costs in the event of your partner’s untimely death.

Individuals in this category can also include unmarried couples who jointly enter into leases, car financing arrangements, and even mortgages on a home or income-generating rental property. This same type of arrangement can also exist between a parent and a child, siblings, or close friends.

You should also get life insurance if you’ve cosigned for some other types of debt, like a student loan or consumer credit debt, to protect your cosigner from having to foot the whole bill.

Lastly, business loans personally guaranteed by an individual or …read more

Source:: Business Insider

      

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