Insurance & Annuities

4 Good Reasons to Have Life Insurance

Think you don’t need life insurance if you don’t have kids? Think again. It may seem like an unnecessary expense. But there are many reasons to have life insurance, even if you’re not supporting a family.


  1. Mortgage protection

Whether you live by yourself, with a spouse or significant other, you may want to buy life insurance as mortgage protection. Think about it – you don’t want the person you live with to be homeless if you die unexpectedly, do you?

Term life insurance can be used to pay off an outstanding mortgage balance. Just select a term that matches the length of your mortgage payment period. Some companies even offer decreasing term insurance, which means the death benefit decreases along with your mortgage balance.

  1. Income replacement

You and your significant other may have planned for a future based on two incomes – but what if one of you passes away unexpectedly? Life insurance can be used to replace the lost income so the survivor can maintain the same standard of living.

  1. Final expenses

You’ve seen the commercials – funeral expenses, burial costs and medical bills can add up to a hefty amount. The last thing you want is for your loved ones to shoulder this extra burden.

Life insurance can be used to plan for these final expenses. Permanent life insurance is available in various amounts, so you can pick a death benefit that meets your needs.

  1. College funding

OK, OK … this one only applies if you have kids. But have you seen the tuition rates lately?

Life insurance can help fund a college education. If you die, the death benefit may be invested and potentially grow to the needed amount by the time your children reach college age. Feel better knowing that you helped prepare for their future – even if you are not there to see it.

Just keep in mind that investing involves market risk, including risk of loss of principal. Take care to ensure that permanent life insurance is suitable for your long-term life insurance needs. You should weigh any associated costs before making a purchase.


Annuities are financial contracts between you and an insurance company. You give the company money now and the company pays you periodic lifetime payments at a later time. Annuities can be useful retirement tools.

Annuities have a special tax advantage under which you won’t pay income taxes on gains in the contract until you begin to withdraw money. Withdrawals may be subject to surrender charges. If made prior to age 59 1/2, may be subject to a 10 percent federal tax penalty.

Types of Annuities

Two types of annuities. The two types of annuities are fixed and variable. With a fixed annuity, you can expect a guaranteed rate of return for a specified time. With variable annuities, where the underlying investments are in stocks and bonds, you have the potential for a greater return on your investment, coupled with higher risk of loss including loss of your original investment.