While Edward had no need for life insurance, Bella did! She was so prone to danger (vampires and werewolves, for goodness sakes) and clumsiness; her frail human life could’ve failed her at any time. But, on a serious note, life insurance is crucial to leaving your finances in order.
Life insurance can serve many purposes.
First and foremost, it supports the surviving family of the insured. This is especially important when it’s a case of a dependent spouse and/or children. When considering “how much” life insurance, this is an important factor to consider: what is the cost of supporting the people you’re responsible for?
Life Insurance can also cover funeral and burial expenses, thus removing the burden from family members. According to ftc.gov, “Funerals rank among the most expensive purchases many consumers will ever make. A traditional funeral, including a casket and vault, costs about $6,000, although "extras" like flowers, obituary notices, acknowledgment cards or limousines can add thousands of dollars to the bottom line. Many funerals run well over $10,000.” Life insurance will help with these costly arrangements, and the policy holder can rest assured they won’t leave the family with unforeseen expenses.
What about debt? Life insurance can also cover mortgage payments or other debt, once again removing the burden from surviving family members. Financial commitments are another factor to consider when deciding “how much” life insurance: do you have a mortgage payment, a car payment?
Finally, life insurance can also cover estate taxes. For example, a wealthy person leaves a large piece of valuable property to their child. That child cannot pay the estate taxes for that property, which sadly, has his childhood home on it. The child is forced to sell that property because of the financial burden. But with life insurance (which is tax-free), the child can pay those estate taxes and keep the home.
Questions to consider
There are many things to consider when shopping for life insurance:
Are you single or married? If you’re married, does your spouse depend on you for income?
Do you have children? If so, how many? What are the current costs of supporting those children and what are the future costs (college, etc.)?
What are your assets and debts? Will your life insurance cover your mortgage? If your house is already paid off, can the one who inherits it afford the taxes?
For information about types of life insurance, visit insurance.ca.gov
To speak with an agent, call 1-800-247-9889.