Life insurance: who needs it?

Everyone needs life insurance, no matter what age.

Tracy Cain, owner of Farmers Insurance- Tracy Cain Agency, Inc, has been working with in the agency since 2017 and is a Connersville native. She is able to help a client, and or prospective client, find a policy and coverage that best suits their needs for almost any circumstance.

"Life insurance is a legally binding contract that promises a death benefit to a policy owner when the insured person dies. When the insured person dies, the policy's named beneficiaries will receive the policy's face value, or death benefit," Cain explained. "You can purchase temporary (Term) life insurance policies, which expire after a certain number of years, or permanent (Whole) life insurance policies which remain active until the insured person dies, stops paying premiums, or surrenders the policy."

So, why is having life insurance important?

"Life insurance is there to help your loved ones with financial needs when the inevitable happens and you are no longer with them. It's an assurance to help care for them at one of the most difficult times. Purchasing life insurance can be one of the kindest, and most important things you do for your loved ones. It is a way to take care of them when you no longer can," she said. "However, life insurance is also a great way to plan for the later stages of YOUR life. It can be a means for saving money and retirement planning. It's a great way to tuck away a nest egg for a later stage of life."

Cain explained that everyone needs life insurance, even if If only to ensure that your loved ones don't need to worry about how they will pay for your burial arrangements.

"It is heartbreaking and stressful to bury a loved one and to have to worry about how you will provide them with a funeral is a horrible situation to find yourself in. Life insurance helps a person and their family address concerns such as, How will they support themselves and their dependents without you there. How will the mortgage, auto loan, medical bills, or credit card debt get paid? How will your burial and funeral services be taken paid for? How will college tuition get paid? These are all very important things to consider for your loved ones, and how they will be able to meet their needs. A life policy is not only to keep them whole but to help lessen the stress at a time of grieving when the simplest decision can be overwhelming."

Cain went on to say a life policy not only helps pay for a funeral and helps with the bills, but a whole life policy builds cash value, and is a great way to build a savings.

"Not only does it generally pay more interest than a savings account, but you still get a death benefit payout. So, you get a cash build-up AND payable death benefit. In addition, you can take a loan out on the cash that has built up to help with things like paying for a wedding, paying for college, buying a car, etc ... and the interest that is paid back is paid to yourself. Or you can surrender the policy and take out ALL of the cash that has built up."

The maximum age to purchase a life policy is determined by the underwriting guidelines of each insurance company so there isn't generally a universal set age limit. However, you may not find a lot of companies willing to issue you a policy if you're age 85 or older.

For more information, call 765-222-1074, email me tcaina@farmersagent.com.

"Think about this: a policy can be as little as $10 a month when purchased at a young age. Most people blow more than $10 a month on soft drinks and candy bars. Making a plan to care for your loved ones when you cant be there or making a way for them to afford your funeral arrangements is worth every penny."