Do I need Life Insurance?

Do I need life insurance? This is a question from my client Jesse in Prescott Valley, Arizona. It’s a great question. Jesse is a very straightforward. My favorite kind of client just kind of asked me straight and tells me straight, so I appreciate that. So I already answered Jesse in person, but I wanted everyone else to benefit from this question cause it’s just a great question.

Do I need life insurance? The short answer is no. Not everyone needs life insurance. it depends on if you have some other protection, financial protection in place for your beneficiaries, and it should be held in trust, not in an estate formed by a will. That’s good to have that. I mean, it’s better than nothing, but a trust completely bypasses probate.

What you’re going to need in a state like Arizona life insurance completely bypasses probate. So if you have a trust and you have investments that are funneled through the trust. And they are quick liquid investments. so. you know, the best example would be something like a checking savings account that has plenty of money to cover, cover the needs for your beneficiary.

Now, most people are not fortunate enough to have a trust and cost money to set up a trust, and they’re not fortunate enough to have these investments, liquid assets that can cover these things. The reason why that specifically, are the examples of things that you’re going to want to have. for your beneficiaries is because that’s what life insurance does to life.

Insurance is incredibly fast. I’m not going to call it liquid because technically it’s not investment, but it’s very fast. So it comes quickly to your beneficiary. It completely bypasses probate doesn’t need to be handled through a trust or anything like that. You don’t have to have a trust, you don’t need to have a will.

In most cases. So life insurance comes very quickly to a beneficiary and completely bypasses probate. So. For most people, they’re going to want to have life insurance in place. Otherwise, they’re handing a bag of debt, to their beneficiaries. And it’s hard enough for most people to take care of their known.

They’re their own expenses, but then someone passes away and all of a sudden they have to cover these extra costs. And in a lot of cases, we’re talking about thousands of dollars, five, 10, 15, 20, even $30,000. of costs, depending upon the wishes of whoever passes away. So right now we’re talking about you, or maybe we’re talking about your spouse or something like that.

you want to have some coverage in place if you don’t have those protections. So just give it an honest look. Give it an honest reflection of if you have that, if you do, you’re probably okay. And there are many appointments that I have where I tell my clients, you may not need life insurance. Let’s explore it and let’s see.

And half of those times I’m saying, yeah, it looks like you probably don’t need it. that being said, if you want it, I’m not going to turn you down. It is an economical way to do. Take care of these things, and then their investments can be used for other things. The life insurance has a very specific purpose.

it’s, it’s a great way to save on taxation, things like that. So there are lots of benefits to it, but not everyone needs it. So I hope that’s been helpful. if you have other life insurance questions, even annuity questions, click the button below. Be happy to provide a free consultation for you.



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Chad McMahan

Chad McMahan

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