Life Insurance

Life Insurance in Huntington Beach, CA

If you live in Orange County, California, there’s a solid chance you have an insurance policy to cover just about everything –– your vehicle, your home, your belongings, and maybe even your pet.

But do you have an insurance policy that protects your most valuable asset: you?

Life insurance is a topic a lot of people shy away from, and we get it. After all, it’s a rather morbid subject to discuss. But the truth of the matter is that death is inevitable and if someone depends on you financially, it’s a topic you can’t afford to ignore.

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Life Insurance 101: Understanding the Basics

Life insurance is the cornerstone of any sound financial plan. Not only can it be used to protect your family upon your passing, it can also be a useful savings and investment tool. But while 84% of Americans say that most people need life insurance, only 59% actually own some form of it.

So, what gives?

 

Do I Need Top-Rated Life Insurance?

This is the most common question our clients ask. And truth be told, the circumstances vary from person to person, family to family. However, if you fall into one of the following five categories, there’s a good chance that a life insurance policy is something that you truly need.

Single, Young Professionals

Currently focused on your career, but planning to get married, buy a home, and start a family in the near future? Lock in life insurance rates now while you’re young for more affordability –– because you are never as healthy as you are today.

Newlyweds (who just purchased a home)

As an Orange County resident, there’s a good chance your mortgage is based upon dual income. In the event you were to lose one source of earnings, a life insurance policy could protect you from having to unexpectedly sell your home or, worse, face foreclosure.

Parents (with children of all ages)

Most of us don't like to dwell on our own mortality, but the moment you have kids, you really don’t have a choice. In a nutshell, a life insurance policy is an inexpensive way to protect your family’s financial future and insure their wellbeing. And this is especially the case for these three types of parents:

1. Stay-At-Home Parent

There are two sides to this coin: (1) You are the breadwinner and unexpectedly pass away. A life insurance policy would provide a cushion, allowing the stay-at-home parent to not have to worry about finding a job right away in order to meet income requirements. (2) Your co-parent unexpectedly passes away. Replacing the economic contributions of a stay-at-home parent can be very expensive. A life insurance policy could help to offset newly acquired costs associated with daycare, shopping, cleaning, meal preparation, and more.

2. Single Parent

Life insurance is a must-have for many people, but it’s especially important if you’re raising a child or children on your own because you are the sole provider. Surprisingly, nearly 70% of single parents don’t have it. In the event you were suddenly gone, a life insurance policy would ensure their future wellbeing.

3. Caretaker of a Child with Special Needs

Parents of children with special needs can face complex challenges that other parents don’t. Life insurance is one way to ease the financial strain of ongoing care for their child upon their passing.

Small Business Owners

There’s no doubt that your business partners and / or employees depend on you for their livelihoods. Through key person insurance and buy-sell agreements, life insurance can protect your business in the event your passing.

High Net Worth Individuals

It’s a common misconception that wealthy individuals do not need life insurance as they already have sufficient assets. However, life insurance allows the heirs to utilize death benefit proceeds to pay potentially hefty estate tax bills.

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What Can Life Insurance Be Used for?

Life insurance provides you with immediate income so that you have the freedom to grieve and not make rushed decisions in the event of a loss.

Here are some of the most common things it can help pay for:

Final Expenses

Caskets, transportation, headstones, and ceremony fees all add up (in fact, in the United States, the average funeral now costs between $7,000 and $9,000). Having a life insurance policy could help to offset burial or cremation fees. Additionally, it could help pay for end-of-life hospital bills or hospice care that insurance may not cover.

Pay Off Debt

While funerals are typically the most top-of-mind final expense, outstanding debt is another factor to consider. If you owe a substantial dollar amount in the way of credit cards, student loans, car payments, or a mortgage, a life insurance policy could help to settle these payments and allow your loved ones to maintain their financial footing.

Future College Education

In the event that your family’s primary breadwinner passes away prematurely, the income tax-free death benefit of a life insurance policy can be used to pay for education costs.

Peace of Mind

A recent study found that 69% of people with life insurance felt less stressed knowing their family was financially protected. And this makes sense; at the end of the day, a life insurance policy is designed to offer ease and comfort. It can allow your family to maintain the lifestyle they’ve become accustomed to and has the ability to provide stability in a time of need.

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