5 Reasons to Consider Life Insurance

Is life insurance part of your overall financial strategy? Whether you're building wealth, protecting loved ones, or planning for retirement, here are five reasons to consider it. **1. You Have a Young Family** Many people remain uninsured or underinsured, often due to misconceptions about cost — studies show many consumers significantly overestimate what term life insurance costs, especially younger adults. Policies have evolved considerably: many term life policies may not require a medical exam depending on age and health, making coverage more affordable than expected. Relying solely on employer-provided coverage can also leave gaps, since workplace policies typically offer only modest benefits. Consider factors like mortgage payments, debts, healthcare costs, and future education expenses when evaluating how much coverage your family may need. **2. You Need More Tax-Advantaged Wealth Transfer** For high-net-worth individuals or business owners, life insurance can be an efficient vehicle for wealth transfer and estate planning. Proceeds often pass to beneficiaries income tax-free and can help mitigate estate taxes when structured properly. A financial professional can help tailor a policy to long-term goals. **3. You Are Looking for Tax-Advantaged Retirement Income** A permanent life insurance policy with cash value can provide a stream of income if needed. Cash value can build over time and potentially be borrowed against for expenses like college or retirement, often without tax owed if IRS rules are followed. **4. You Want to Protect Your Spouse** When one spouse passes, the surviving spouse typically continues receiving only the larger of the two Social Security checks. Permanent life insurance can help protect a surviving spouse's lifestyle. **5. You Want Long-Term Care Insurance** Some "hybrid" life insurance policies cover additional events like disability or long-term care needs, either built in or as optional riders. These have grown in popularity versus traditional long-term care insurance because if the coverage is never used for care, the policy still pays a death benefit. Long-term care can cost more than $9,000/month on average for a shared room — Medicare only covers short-term stays, and Medicaid typically requires spending down most assets to qualify. Do you have questions about life insurance? We're here to help. This article is for informational purposes only and is not intended as financial, legal, or tax advice. Consult a qualified professional before making financial decisions. Sources: CNBC, USA Today, Forbes Advisor, Genworth, AARP