Your Life Insurance Why: Family, Legacy & Business

family

The first thing people think about when they think life insurance is to protect their family. The birth of my son was my “Why” when I took out my own life insurance.  Life insurance helps cover final expenses, pay the bills, pay for education & so your family can maintain the life you’ve built together. 

It’s a way to turn love into action, providing stability and security, so your family can focus on healing and moving forward without sacrificing their dreams or comforts.

legacy

Life insurance is a financial tool that helps people pass wealth on to the next generations, creating a legacy. 

Beyond the dollars and cents, life insurance is a testament to your foresight and care, offering future generations a foundation to build on and a reminder of the legacy you worked so hard to leave behind.

business

What happens to a business if a major shareholder dies?  Seriously think about it, what would happen to their shares? Would your business survive? Would things get messy & complicated? 

Business owners & partners use life insurance in a couple of core areas:

Key Person Insurance

A life insurance policy on a key person in a business, taken out by that business, where in the event of death the business receives the sum insured to help with business continuity. 

Shareholders Agreement

Shareholders’ insurance is a specialized policy designed to provide funds for surviving shareholders to buy out the shares of a deceased or incapacitated shareholder to protect the business best interests. 

Want business stability? Use life insurance, pay a tiny portion of your overall revenue and ensure continuity. 

Personal Financial Matters

Prudent financial planners use life insurance to help cover:

1. Outstanding debts
2. Mortgages
3. Car loans
4. Credit Card balances

Life insurance ensures that your loved ones won’t be burdened with outstanding debts, during an already difficult time.

Inheritance Tax Planning

Before you inherit anything or before your family does, you may be responsible to pay inheritance tax.

Life insurance provides families the liquidity needed to settle taxes without forcing the sale of cherished family assets or property. 

With life insurance, you’re not just protecting your family’s present—you’re laying a foundation for their future, ensuring that your legacy is passed on smoothly and without unnecessary financial strain.

Family Medical History

When your family’s medical history casts a shadow of uncertainty, life insurance with critical illness protection becomes even more important. If an illness strikes, critical illness coverage ensures that you and your loved ones have the resources to focus on recovery rather than the financial burden of treatments, hospital stays, or lost income. 

Final Thoughts

At the end of the day, all insurance is, is a transfer of risk for you, your family or business to an insurance company. For that transfer, you pay a small percentage to protect A LOT. 

Unlike health insurance, life insurance premiums are fixed for the duration in a term-life policy, they don’t increase with age or inflation. 

Death is never an easy topic to discuss, but life insurance transforms that difficult conversation into the ultimate act of love and responsibility. It’s a way to protect, provide, and leave a lasting gift for those who matter most, ensuring their future is secure even when you’re no longer there.