Life insurance is essentially money paid after your death to the beneficiary you name on your policy. You pay a premium every month to maintain the policy.

There are many reasons to have life insurance:

  • Support your family in the event they lose your income stream
  • Pay off debts you may have incurred so your family isn’t stuck paying them in your absence
  • Pay for your children’s college
  • Cover funeral and other end-of-life expenses, including estate taxes

The Sooner You Enroll in Life Insurance, the More Affordable It Will Be

You may not have familial or financial obligations today, but you might in the future. Life insurance premiums are heavily based on health. A person who is older and has health issues is more likely to pass away in the near future, so the insurance company will charge more for the policy. Locking in a good rate when you’re young, even if you don’t have a lot of people relying on you, can pay dividends in the future.

Ensuring Your Family’s Financial Stability

The reason most people get life insurance is to safeguard their family from financial difficulties in the event they were to pass away unexpectedly. Supporting a spouse, raising a family, paying for college and making monthly mortgage payments are all things life insurance can cover. If something were to happen and you didn’t have any kind of life insurance, your family would suddenly have to figure out a way to make ends meet without your income, likely necessitating a significant downgrade in living standards.

End of Life Expenses Are More Expensive Than You May Think

The average funeral costs between $7,000 and $10,000. If you were to pass away suddenly, your family would have to try to come up with this money in the spur of the moment while they are in the process of grieving.

Estates exceeding $5.45 million are also subject to a federal estate tax. If your estate exceeds that amount, a life insurance policy may be able to offset or pay for some of those taxes.

Source: https://www.parting.com/blog/funeral-costs-how-much-does-an-average-funeral-cost/

Do You Have Debts?

Creditors generally don’t forget about someone’s debt once they die. Those responsibilities are often passed on to a spouse or children. The last thing most people want to do is put their family in a situation where they have to figure out how to maintain their current lifestyle and pay off debts without your income. Being able to wipe out credit card debt, car payments or a mortgage may make all the difference to your loved ones.

Pay for College

The College Board’s breakdown of average undergraduate college costs for the 2016 – 2017 school year:

  • $7,560 for two-year community college programs
  • $14,210 for in-state public college tuition
  • $26,100 for private college

For in-state and private college, multiply that number by four for the total cost of a four-year degree. Having a life insurance policy to cover those costs is an act that can potentially resonate through your family for generations.

Source: http://money.cnn.com/2017/05/01/pf/college/how-much-does-college-cost/index.html

Peace of Mind

No one wants to lose sleep worrying about what the future holds for their family. Knowing that if the worst were to happen to you or your spouse your loved ones would still be able to maintain the same quality of life and pursue their dreams can do wonders for your peace of mind.

If you want to learn more about life insurance or how to create an estate plan that incorporates life insurance or annuities, contact The Law Offices of David L. Carrier at (616) 361-8400 to schedule a consultation.






Establishing an estate plan is important for everyone, but it can be especially important for parents with young children. No one likes to contemplate the worst-case scenario, but it’s preferable to be prepared for all eventualities. Failing to name a conservator of your estate or guardian for your children in the event of you and your spouses’ death or incapacitation means a government bureaucrat will make the decision for you if the unthinkable were to occur. Read more

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