Life Insurance


The purchase of life insurance must start with identifying the needs of the household or business purchasing it.  There are many needs, but the most common are income replacement of the insured, wealth creation for survivors, and funding a future need.

Here are some questions which illustrate and I hope provoke thought for several needs.

Why is Life Insurance Needed?  Thoughts to Mull over…

  • If you are in a personal partnership (usually marriage), how much do you contribute to the family budget?
  • If you were to die prematurely, how would your survivor (s) get by, especially dependent children?
  • Does anyone else depend on you financially, such as a parent, grandparent, brother or sister?
  • If you are a single parent, what level of support payments are you making or getting?
  • How would these be kept up in the event of the contributor’s death?
  • If you have a mortgage on our home, do you want it paid off in the event of your death?
  • If you have children, do you want to put aside money to complete their education in the event of your death?
  • Are there any other family members or organizations to whom you would like to leave money?
  • Could life insurance play a role in business succession plans?
  • Could life insurance play a role in paying the taxes incurred when capital property is transferred from one generation to the next?

The second major aspect of life insurance and the purchasing process is to match the need to the wide variety of life insurance policies that are available.