This video was created by Society of Grownups, which is a learning initiative of MassMutual.
Hi, my name is Tyler Dolan. I’m a Certified Financial Planner(™) professional at Society of Grownups. We’re all about tackling common financial planning topics head on, and in ways that are easy to understand.
Let’s chat today about life insurance. I know that phrase can be a little scary, but if you stick with me you’ll leave with a good idea of whether or not you actually need it.
So what IS insurance?
Well, simply put, insurance itself is protection against some type of risk. You can buy insurance for many different things: your car, your house, healthcare, and even your pet.
Some of those are even required by your state, lender, or the Government.
Here are 5 situations where life insurance makes sense:
- If you have a mortgage or other substantial debts and want to pay them off for your loved ones if you die.
- If you’re married and you want to provide for your spouse if you pass away. Particularly if you are the breadwinner, you may want to provide an income stream to your spouse in case of an unexpected death.
- If you have kids, maybe you want to cover or supplement their college costs. If you’re a stay-at-home parent, maybe you want to cover expenses for someone to care for your children. Maybe you just want to provide an inheritance to your children if you pass.
- If you own a business, maybe your family relies on your business income to survive. You might have business debts that could fall on your family if you don’t have life insurance. Maybe you just don’t want the business you’ve worked so hard to build fall apart upon your death.
- If you want to help with your end of life expenses, maybe you want to be able to cover funeral expenses. Maybe you’re wealthy and you want to help pay your estate taxes.
If any of those five scenarios apply to you, your next question probably is “How much life insurance do I need?” To find out what’s appropriate for your situation, schedule an appointment with a financial planner to determine the best amount for your needs.
Thanks for watching today.