Who needs life insurance? Hint: It Isn’t Just for Parents 

 Even if you don’t have minor children in your care, your family might still benefit from life insurance coverage. This might apply if you have an elderly relative who is relying on you, a spouse who doesn’t work or earns less than you, an adult child with disabilities or other consistent needs, and the list goes on.

Here’s what you need to know when considering your own possible need for coverage.

What’s life insurance?

 There are numerous types of life insurance and strategies for using it (download our introductory guide to insurance for more!). Life insurance can function  as everything from a source of income replacement in death to a long-term care or estate planning tool.

However, for many people the essential purpose of life insurance is to help provide resources to those who depend on us for income and financial support. Life insurance thus tends to come up as an important issue for new parents. But it’s not only parents who can benefit.

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​Your Life Insurance Guide

The Basics on Life Plans

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Who could use life insurance?

Potential beneficiaries we’ve seen for life insurance coverage can include:

  • Immediate family members, like a spouse or child
  • An elderly parent
  • Adult children
  • Children and family members from previous marriages

For example, a middle-aged client, Terry, wanted to make sure that she would be able to help a beloved nephew from her first marriage. Terry had supported her nephew to varying degrees as he entered the workforce, and she wanted to make sure he could count on her without complicating the inheritance process. As such, she purchased a life insurance policy specifically for him.

Again, life insurance can be flexible in this way, but it is not always the most prudent solution for every situation. We recommend working with a financial advisor who can offer advice on personal insurance strategies.

What you should consider

 If you’ve bought life insurance as a way of providing financial resources for your children, you might have considered purchasing the maximum policy for the minimum price. But this doesn’t always ensure the right level of coverage.  

You might also want to consider:

  • Your beneficiary’s income needs
  • His or her ability to manage a lump sum payment
  • Other assets or arrangements for providing support
  • The amount of money you want to be able to provide
  • Your overall financial and estate plan

In addition to the beneficiary’s needs and financial abilities, you might discover that in your situation there are more advantageous ways of leaving money to your loved ones. These depend very much on your personal financial situation and on your overall estate plan.

Of course, there’s a cost-benefit analysis to take into account, but also a goals and values analysis. We recommend working with a qualified advisor to review your goals and analyze whether life insurance is a suitable solution for your family.

Do insurance questions have you confused?

Life insurance can be complicated – you might be confused about what type of policy to choose, which riders (if any) to include, and even whether it makes sense to buy in the first place.

We recommend our Life Insurance Basics guide to get your started. It will walk you through the different types of policies and the situations they might be suitable for, so that you can walk into your advisor’s office with more confidence about the alphabet soup of insurance.

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​Your Life Insurance Guide

The Basics on Life Plans

​Access Your Guide Below

Let Us Help!

We can discuss this topic and more at a complimentary appointment. As a bay area retirement planning coaches, we can give you a review and make suggestions based on your retirement objectives.

Important Disclosures

The opinions voiced in this article are for general information only. They are not intended to provide specific advice or recommendations for any individual and do not constitute an endorsement by United Planners.

To determine which investments may be appropriate for you, consult with your financial professional. Please remember that investment decisions should be based on an individual’s goals, time horizon, and tolerance for risk. Neither diversification nor asset allocation can ensure a profit or prevention of loss in times of declining values. United Planners does not render tax advice.

Securities and advisory services offered through United Planners Financial Services, member FINRA, SIPC. Pasquale Vitucci, CA Insurance Lic. # 0758212, is an Endorsed Agent of Vitucci & Associates Insurance Services CA Insurance Lic. # 0I06319. Vitucci & Associates Insurance Services and United Planners are separate and unrelated companies.
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