Who Needs Insurance?
Type of Individuals |
Scenario |
Type of Insurance |
| Newlyweds | Insurance can provide protection for couples just starting out who may not be able to afford daily living expenses, pay off debt, etc., on only one income. | Term insurance requires the lowest premium and can be easier for a young couple to afford. |
| Family Breadwinner | Life insurance can replace your income and allow your family to maintain the same standard of living if you pass away unexpectedly. | Term insurance can provide coverage through your working years and/or until your debts are eliminated. |
| Parent of a Special Needs Child | Insurance can provide financial support to the child when the parents pass. | Permanent insurance can provide coverage for life rather than just a set number of years. |
| Stay-at-Home Parent | An insurance policy can cover the cost of childcare and other services the parent was providing in case of an unexpected passing. | Term insurance can cover this until the children are older and no longer need these services. |
| High-Net-Worth Individual | A life insurance policy can help heirs pay estate and/or inheritance taxes. | Permanent insurance coverage is best for addressing estate tax concerns. |
| New Homeowners | Life insurance allows your family to continue paying or pay off the mortgage and stay in the home in the event a wage earner passes away. | Term insurance can cover the time period you will be paying your mortgage. |
| Business Owners | Life insurance can cover business debts, fund buy-sell agreements, and help heirs pay estate taxes. | Depending on the goal of the insurance, term or permanent insurance can be used. |
| Individuals with Student Loan Debt | If you have a co-signer on your loans, an insurance policy provides funds for the co-signer to pay off the debt. | Term coverage can be purchased to cover the years of loan payments. |
| Divorced Parent | Insurance can be used to cover child support payments in the event of death. | Term insurance can be used to cover the years of support payments. |
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