Why You Need an Insurance Agent

 

Why You Need an Independant Insurance Agent

Why You Need an Independant Insurance Agent

This is one of those cases when cutting out the middle man isn’t actually a good thing. A local insurance agent is an important ally you can rely on when navigating the often confusing world of insurance, where the rules are constantly changing state by state and company by company. It’s their job to understand and communicate the important points to you when you’re handed a contract that’s over 50 pages long. If there are any abnormalities or unpleasant surprises hidden in the fine print, your agent is equipped to find them and explain them to you.

Sometimes even more importantly, a good agent has access to the prices and packages of dozens or even hundreds of different insurance companies, and they can sort through them all to find you the best deal. With so many choices to compare, chances are an agent will be able to get you a better result that you could get yourself.

 
Read more about why it’s worth it to use an independant insurance firm here

Who Needs Life Insurance

When you die will someone suffer financially? Then you probably need life insurance because it will provide your family with cash after your death. Upon your death your family will receive a death benefit, which replaces your income and can help your family meet their financial needs, from funeral costs to daily living expenses to college funding.

If you’re married

Many people are under the impression that you don’t need life insurance until you have kids. But this simply isn’t true. If your spouse passes away tomorrow would you have enough money from just your income alone to pay off credit card balances and car loans? Or to just pay for monthly rent, utility bills and food costs? It’s important to get life insurance as a precaution. Additionally, if you are planning on starting a family most life insurance companies won’t insure pregnant women so it’s important to get your policy ahead of time.

If you have kids

The majority of families wouldn’t be able to survive without two incomes coming in to make ends meet. If your spouse died suddenly would just your income be enough to support you and your kids? Would you be able to buy your kids food and put a roof over their head? Would your kids still have a college fund? These are all important things to think about and major reasons to get life insurance.

If you’re a single parent

As a single parent you are the only lifeline for your children. You put a roof over their head, you cook, clean, drive them around, and do so much more. If you don’t have life insurance and something happens to you what is to become of your children’s financial future?

If you’re retired

When you pass away your heirs could be hit with an estate-tax payment of up to 45% after you die, depending on the size of your estate. The money from a life insurance policy is available immediately, allowing your heirs to pay off the taxes and take care of other things like funeral costs and other debts without having to worry about their own finances.

If you’re a small business owner

Did you know that life insurance can take care of your small business and not just your family? What would happen to your business if you, a fellow owner or a key employee suddenly passed away tomorrow? Would the business just come crumbling down? That’s where life insurance comes in. You can opt to get a policy that is structured to help your business in the case of your death. A buy-sell agreement ensure that the remaining business owners have the money to buy the company interests of a deceased owner at a previously agreed upon price. This allows the owners to get the business and your family to get the money. In order to protect your business against losing a key person opt for key person insurance, which is payable to the company and provides the owners with the financial flexibility needed to either hire a replacement or work out an alternate arrangement.

If you’re single

Most single people don’t need life insurance because no one depends upon them. But there are some exceptions to this. If you are taking financial care of an aging parent or a sibling with special needs then your life insurance plan can go to help cover those costs. Additionally, if you are in any type of debt it’s important to get life insurance so that your debt isn’t passed down to surviving family members upon your passing.

Everyone should have life insurance. You never know what will happen and it will only be beneficial. Think about getting a life insurance plan when you’re young because you will get the best rates when you’re young and healthy.

Life Insurance For Small Business Owners

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For anyone, having a life insurance policy is in their best interest. But for small business owners, having a policy is even more important to ensure that your family and dependents are left in a secure place in the chance you pass away unexpectedly. Read on to learn why this is so important for small business owners:

Business continuation

As the business owner what will happen to your company upon your death? Will your heirs need to sell the business in order to pay estate taxes and liabilities? Do all of your heirs coperate enough to take over your business or handle the transition properly? Having life insurance can help ensure that at your death the transition to a new owner will happen orderly and economically.

Key employees

Every business has key employees that help it operate smoothly. But in a small business, the roles of key employees are exasperated and they can sometimes truly be unreplaceable. What happens if one of these employees unexpectedly passes away? Could your business still function as well and be as profitable? Life insurance may be able to ensure that you have cash when you leave it.

Employee benefits

One of the most important things that potential employees look for in a company is quality benefits, which includes life insurance. Many businesses don’t have a good benefit program in place and therefore have trouble attracting and retaining high quality employees. Investing in a life insurance policy for your company can indirectly help your business by helping your recruit the best employees who are looking to stay somewhere long term.

It can replace your income

If you support anyone financially, especially if you’re a small business owner, then it’s imperative that you have life insurance. If you die unexpectedly then your dependents can use the life insurance from your policy to pay for anything from funeral costs, to a college education to day-to-day expenses.

It can protect your heirs from estate taxes

If you die unexpectedly without life insurance and don’t have a lot of money saved up, your family might have to sell your business in order to pay the estate taxes. Having a life insurance policy can help them pay the estate taxes while keeping the business intact.

If you are interested in taking out a life insurance policy contact us at Tom Jones Financial.