To family and loved ones, death is most always unexpected, so it most always seems premature. When it comes to insurance, “premature death” can be defined as “never living long enough to require long-term care.” That's where life insurance plays a more important role than long-term care insurance.

Life insurance is widely recognized as a financial tool to cover the economic value of a human life. When paid to named beneficiaries, life insurance benefits are also income tax free, and they are generally free of probate delays and expenses. Life insurance death benefits can be significantly greater than the premiums you have paid.

Click here for a discussion on the value of term and whole life insurance.

Coverage for lost earnings
If you are a wage earner, your family is counting on the value of your future after-tax earnings from now through retirement. If you die prematurely, your family loses the value of the income you contribute to them. Most financial consultants use a relatively simple model to come up with a “discounted present value” of your future earnings.

Then subtract from that value the life insurance you already own including coverage you may have at work. The balance is the coverage you should consider.

Click here if you would like coverage recommendations for your future.

Coverage for a future expense
Many people use life insurance to cover the cost of a major future expense… for example:

• Cost of college education
• Cost to pay off the mortgage
• Costs associated with transferring your estate

All of these expenses remain if you are not around to pay for them.

Click here if you would like insurance coverage recommendations.