Why You Need Life Insurance

Why You Need Life Insurance

Why You Need Life Insurance

By Supal Vora

We’ve all heard about the importance of having life insurance, but is it really necessary? Often, the answer is “yes,” but it depends on your specific situation.

Cute boy and his son discussing 3D house model

In general, you should consider life insurance protection if any of the following applies to you:

• You are married and your spouse depends on your income
• You have children
• You have an aging parent or disabled relative who depends on you for support
• Your retirement savings and income won’t be enough for your spouse to live on
• Your estate may be subject to federal or state estate taxes
• You own a business, especially if you have a partner
• You have a substantial financial obligation such as a personal loan for which another person would be legally responsible after your death

In these cases, the proceeds from a life insurance policy can help the people you leave behind after your death.

Young engineer discussing his eco-city project with sons

If you’re still unsure about whether you should buy life insurance, ask yourself: If I died today with no life insurance, would my family need to make substantial financial sacrifices and give up the lifestyle to which they’ve become accustomed in order to meet their financial obligations (e.g., loans, mortgages, college tuition, etc.)?

If you decide you need life insurance, don’t delay buying it. Although no one wants to think about and plan for death, you don’t want to make the mistake of waiting until it’s too late.

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 company. Life insurance is not guaranteed by the FDIC or any other government agency. 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.

Supal VoraAbout Supal Vora

Supal Vora, AAMS®, CRPC®, is a Private Wealth Advisor and Chief Executive Officer with Pahal, Vora and Associates a private wealth advisory practice of Ameriprise Financial Services, Inc. He specializes in fee-based financial planning and asset management strategies and has been in practice for 16 years. Contact him at: www.pahalvoraandassociates.com, 904.571.1495, 401 West A Street, Ste. 2245 San Diego, CA 92101

You’re having a baby

You’re getting married

You financially support aging parents

You have debt

You’re self-employed

You have a high-risk job

You have extreme hobbies

Policygenius can help you compare life insurance policies to find the right coverage for you

at the right price

I quit my day job 4 months ago to become a freelance writer. Here’s what my family of 4 spends in a typical week.

8 pieces of advice to help you retire when you want

according to people who have done it

Here’s what my family spends during a typical week.

Trump said he has come up with a ‘beautiful’ new name for

Iran’s military says it thought the Ukrainian passenger plane it shot down was a US military plane

Iran’s foreign minister said ‘US adventurism’ is to blame for the Iranian military shooting down a passenger jet

early years

other government agency

Your estate

Your retirement savings

financial sacrifices

optional benefits

personal loan

still unsure

surrender charges

state estate

account fees

Most policies

financial obligation

financial strength

financial obligations

specific situation

Life insurance

too late

administrative fees

expense charges

investment management

legally responsible

contract limitations

really necessary

contract owner


life insurance

college tuition

Share this;