Why Do I Need Life Insurance?

Why do I need life insurance?

Life insurance is about how you want to live your life right now and many years from now.  It’s also about how your loved ones will live their lives when you’re gone.  AMAC offers life insurance products through various top-rated reputable life insurance carriers to help protect what is important to you – whether it is to protect the assets you’ve worked so hard to attain, or to ease your family’s burden after you are gone.    Life insurance helps to provide peace of mind for you and your family.

To Replace Lost Income

Most people buy life insurance as a means to replace income lost if something happens to them. Providing money for survivors is important. Life insurance is the most cost effective way to do it.

To Pay Off Debt

Debt can be very burdensome to your family, especially without your income available to help repay it. Life insurance can be used to pay off debt and help create more financial security for your family.

To Pay Final Expenses and Offer an Emergency Fund

Final expenses can be very significant, especially if there are large medical bills, funeral or legal expenses to pay. An emergency fund can cover unexpected bills such as emergency repairs to your home or car. Life insurance provides cash that can be used to help your family cope in a time of distress.

To Help Pay for Your Children’s Education

Educating children can be expensive and often requires a long-term strategy. Many people plan to contribute funds each year until they have enough money saved to pay all or some of their children’s education costs. Unfortunately if something unexpectedly happens to you, there may not be enough time to set aside adequate funds for education. Life insurance can help by creating a lump-sum of cash that you can count on to help pay part of your children’s education costs.

Types of Life Insurance

Term Life:    Protects your family with a death benefit for a specific term or span of years if scheduled premiums are paid.  If you die during the policy term, your beneficiary is paid the coverage amount subject to your policy terms. Since it provides “pure” insurance without any cash value accumulation, term life insurance coverage is generally less expensive initially than permanent coverage.

Whole Life:  Considered “permanent insurance”, coverage is intended to remain in force during the Insured’s entire lifetime, providing premiums are paid as specified in the policy.  A whole life insurance policy can build cash value on a tax-deferred basis.  Both the premiums to pay and the cash values that result are predetermined and found in the policy contract.  The cash value is an amount of money available to the policy owner for policy loans or as the surrender value if the policy is canceled and returned to the company.

Universal Life:   Considered “permanent insurance”, UL policies offer a valuable death benefit and provide the opportunity to build cash values that you can borrow, or withdraw.  If your Universal Life (UL) policy is in force at the time of the insured’s death, policy proceeds will be paid in accordance with the terms of the policy to the beneficiary.  With certain limits, you can choose the premium you wish to pay and this determines how the policy values develop.    UL is also an “interest sensitive” product, which means that the interest rates credited to policy values will change over time.

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7 years ago

If I don’t have anyone to leave anything to & I have enough in savings to bury me. Oh yeah & don’t
owe anything. Why would I need life ins.?

William Johnson
8 years ago

Life insurance is indeed an important thing for a family. It saves your loved ones from any anxieties whenever the policyholder perished. And I would rather have term life insurance because it is less expensive compared from other types of insurance.

Howard Last
8 years ago

One thing that is not mentioned very often is, that if you have sufficient assets you do not need life insurance. (@kashapero)
8 years ago
Reply to  Howard Last

Sorry ignorant statement. Life insurance provides a tax free zone for your assets. Should always be in your portfolio. And no I am not selling anything.

Jim Lee
8 years ago

I’m in the same predicament as Donald. I would like to get out from under AARP but afraid to lose my insurance. Please advise. Thank You.

Donald B. Moore
8 years ago

I have had a $10,000 life insurance with New York Life for about ten years , which I pay $85.03 a month to AARP. If there were any way I could switch this to AMAC or pay it derect to New York Life, I would like too. I do not like AARP in itself and would drop them if I could do so without looseing my insurance, Let me know if you could help I joine AMAC back on Dec 1 but have not receaved my card yet.
Donald B. Moore

8 years ago

Life insurance can not only provide money to pay off your outstanding debt, but it can be used for any purpose, such as, providing money to help fund your surviving spouse’s retirement, pay for living expenses, and leave money to your favorite charities.

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