We\u2019ve all heard about the importance of having life insurance, but is it really necessary? Usually, the answer is \u201cyes,\u201d but it depends on your specific situation. If you have a family who relies on your income, then it is imperative to have life insurance protection. If you\u2019re single and have no major assets to protect, then you may not need coverage.<\/p>\n
In the event of your untimely death, your beneficiaries can use funds from a life insurance policy for funeral and burial expenses, probate, estate taxes, day care, and any number of everyday expenses. Funds can be used to pay for your children\u2019s education and take care of debts or a mortgage that hasn\u2019t been paid off. Life insurance funds can also be added to your spouse\u2019s retirement savings.<\/p>\n
If your dependents will not require the proceeds from a life insurance policy for these types of expenses, you may wish to name a favorite charity as the beneficiary of your policy.<\/p>\n
Permanent life insurance can also be used as a source of cash in the event that you need to access the funds during your lifetime. Many types of permanent life insurance build cash value that can be borrowed from or withdrawn at the policyowner\u2019s request. Of course, withdrawals or loans that are not repaid will reduce the policy\u2019s cash value and death benefit.<\/p>\n
There are expenses associated with life insurance. Generally, life insurance policies have contract limitations, fees, and charges, which can include mortality and expense charges, account fees, underlying investment management fees, administrative fees, and charges for optional benefits. Most policies have surrender charges that are assessed during the early years of the contract if the contract owner surrenders the policy. Any guarantees are contingent on the financial strength and claims-paying ability of the issuing insurance company. Life insurance is not guaranteed by the FDIC or any other government agency; it is not a deposit of, nor is it guaranteed or endorsed by, any bank or savings association. The cost and availability of life insurance depend on factors such as age, health, and the type and amount of insurance purchased. If you are considering the purchase of life insurance, consult a professional to explore your options.<\/p>\n
The information in this newsletter is not intended as tax, legal, investment, or retirement advice or recommendations, and it may not be relied on for the \u00adpurpose of \u00adavoiding any \u00adfederal tax penalties. You are encouraged to seek guidance from an independent tax or legal professional. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the \u00adpurchase or sale of any security. This material was written and prepared by Broadridge Advisor Solutions. \u00a9 2025 Broadridge Financial Solutions, Inc.<\/p>\n","protected":false},"featured_media":964,"template":"","meta":{"_acf_changed":false},"article-category":[20],"class_list":["post-963","articles","type-articles","status-publish","has-post-thumbnail","hentry","article-category-risk-management"],"acf":[],"yoast_head":"\n