How can I protect my family when I'm gone?
Make a Final Will and Testament
It’s important to have a will. In your will you can make provisions for your children’s care and education. And you can dictate who will manage and receive your assets when you are gone. Without a recent, signed and notarized will, your family, including a spouse, may not be able to access your assets until the estate closes. Protect them by ensuring that your will is up to date and includes
You should also consider a Living Will. A Living Will communicates your final health standard wishes to your family and can include your guidance on keeping your life artificially prolonged. While you are healthy, you should check with your doctor to discuss various life saving medical treatments that often are protected in living wills. He or she can provide you with detailed medical information that you can use to make your decision.
Secure their Future with Life Insurance
Having the proper amount of life insurance can provide for your family when you’re no longer here to help. With life insurance, you can provide for those you leave behind a lifetime of financial security.
Certain life events will often signal a need to consider protecting your family with additional life insurance:
• You have added dependents: This can be a spouse, children or aging parents or sibling.
• You have a sizable estate and need to ensure that your legacy will be transferred along your guidelines
• You have purchased a business
When purchasing life insurance, you need to consider your long term financial plan and how life insurance may play a part. Depending upon the certificate you purchase, life insurance can offer:
Tax-Deferred Cash Values. Some types of life insurance build cash value over time. Tax deferred means that you do not pay taxes on the cash value accumulation. Taxes are deferred until you receive funds from the policy.
Access to Funds. The cash value earned on a permanent life insurance policy can be withdrawn or borrowed against, to help with big-ticket items, such as a college education or down payment on a home. Of course, withdrawals and/or loans and unpaid interest on loans will reduce the death benefit (i.e., the amount paid if the owner of the policy dies).
Direct Payment of Taxes or Expenses. Life insurance benefits can go directly to your beneficiaries and can be used to pay funeral expenses and estate taxes.
Reassess your coverage
If you currently have life insurance, keep in mind that as life changes so does your need for protection. Review your life insurance needs every few years. Any of the changes listed below should prompt you to sit down with your insurance agent or financial advisor to make sure your insurance plan is still appropriate:
• You have recently married or divorced
• A child or grandchild has been born or adopted
• Your health or your spouse's health has deteriorated
• You have begun to provide care or financial help to a parent
• A child requires assistance or long-term care
• You have recently purchased a home
• You are planning for a child's or a grandchild's education, he or she is about to enter school or college
• You or your spouse is concerned about retirement income
• You or your spouse has recently been promoted
• You have refinanced your home mortgage in the past six months
• You or your spouse has received an inheritance
Learn how much insurance you need to protect your loved ones with the Royal Neighbors life insurance needs assessment tool.