Your Money
Everyone needs life insurance, even celebrities
Life takes surprising twists and turns. Preparing for unexpected events with proper life insurance coverage is important, no matter who you are. Just ask Donnie Wahlberg, actor, singer, and producer.
Donnie’s sister, Debbie, died at the age of 44 with a 16-year-old son and no life insurance. Fortunately, Donnie’s nephew was cared for thanks to a strong, extended family and famous uncles with the wherewithal to meet his needs.
A member of New Kids on the Block, Donnie understands the outcome could have been far worse. For many families if the head of the household dies prematurely, they are left without financial security of life insurance.
His personal experience was a wake-up call to the importance of planning for the unexpected.
“My sister was taken away from us too soon,” said Donnie. “She was a young woman who had her whole life ahead of her, but like so many people, she didn’t think about the ‘what ifs’.
“When it was time for me to set up my own financial plan, life insurance was a no-brainer. If something were to happen to me, I want to know that my loved ones will be taken care of financially. Life insurance guarantees that.”*
How can life insurance help?
If someone depends on you, it’s likely you need life insurance. It provides cash to your loved ones, and there is no federal income tax on life insurance benefits.
If something happened to you tomorrow, how would your family fare financially?
Would they have the money to pay for your final expenses (funeral costs, medical bills, taxes, debts, lawyers’ fees)? Would they be able to meet ongoing living expenses like the rent or mortgage, food, clothing, transportation costs, healthcare? What about long-range financial goals? Without your contribution to the household, would your spouse be able to save enough money to retire comfortably?
When you’re determining the amount of life insurance to buy, keep these general guidelines in mind:
- $8,000-$10,000 will be needed for your final expenses.**
- Plan for enough money to pay a mortgage or rent balance for 10 years.
- For emergencies, plan to have half your annual salary or a minimum of $15,000.
You work hard every day to provide for those you love. You want to ensure that your family is protected – no matter what happens. You can do that through life insurance.
What are you waiting for? If you don’t already have life insurance for yourself AND your family, now is the time – September is Life Insurance Awareness Month.
* Reprinted with permission of the Life and Health Insurance Foundation for Education
** National Funeral Directors Association, 2008
Know the facts about life insurance
- The proceeds of your life insurance certificate are payable in a timely manner, allowing your beneficiaries to take care of estate taxes, funeral costs, and other debts.
- Through life insurance you have the opportunity to easily leave a gift to your favorite charity.
- The proceeds may be paid to your beneficiaries income tax-free.
- Life insurance proceeds can be arranged to avoid probate.
68 million adult Americans have no life insurance at all. Those with coverage have far less than most experts recommend to ensure a secure financial future for their families.
|
Call (866) 845-6665 for a free analysis of your insurance needs.
|