Heritage Financial Planning

Do I Need Life Insurance?

July 06, 2023

Life is full of uncertainties, and it is always challenging to determine if you are protected for the future. Macroeconomic conditions, family dynamics, financial goals, and succession planning are some ways that life insurance can help protect your family.

Life insurance is a financial safety net that is useful in every situation. While there isn't a one-size-fits-all solution for all conditions, there is indeed a way to implement life insurance policies into your life to have a financial safety net.

Let's discuss some factors you should consider: 

Dependentsinsurance umbrella over family

Dependents are the most common catalyst to securing life insurance. You want to safeguard your family in case anything happens to you, whether it is the untimely event of your passing or a critical illness that can severely affect your income generation or asset creation potential.

Your spouse, children, elderly parents, or other dependents rely on your ability to provide and sustain their quality of life, depending on the situation. Life insurance offers regular and lump-sum payments that cover many things, such as daily expenses, funeral costs, mortgage payments, and other financial obligations that cannot easily be fulfilled after your passing.


Debt is a severe issue for many families, even with regular income and assets. Compounding this, debt can be debilitating with the loss of your income or the primary provider of the group or family.

Although most think life insurance is just a lump sum paid after passing, it is much more than that. Life insurance policies can be customized to your unique situation, which includes debt management. Mortgage payments, student loan payments, and car loans. These are a few of the standard debt products that families may need to help pay off debt in an emergency.

Life insurance can be combined with a holistic financial planning process that can help with debt consolidation. Speaking with a financial planning professional can help you make better financial choices for your family.

Business Ownership

As a business owner, it's important to know the unparalleled value of insurance policies. 

For small family shops, your policy is vital to save your business and safeguard your bottom line if you cannot keep working. In the event of your death, the life insurance policy could be used to pay off any debts and help cover the expenses associated with finding your replacement. 

If you have business partners, you might have a stipulation in your partnership agreement that allows remaining partners to buy out their share of the business if one partner dies or becomes incapacitated. Life insurance can be an important resource to help fund this partner buyout. 

Peace of Mind

If any of the above criteria doesn't fit your situation, a life insurance policy is still highly beneficial for various reasons. Even if you do not have insurmountable debt, dependents, or are a business owner, a life insurance policy can provide you with the peace of mind that comes with financial security.

The younger and healthier you are, life insurance premiums tend to be much cheaper and can protect your current assets. Once you consider starting a family, you can rest assured that your proactive and forward-thinking efforts defend them.

Assuming this situation still doesn't apply to you, life insurance policies can be used as a method that is part of your holistic financial planning, offering financial, tax, and intangible benefits to improve your lifestyle.

life insurance policy paperworkTypes of Policies 

Life insurance products are only as complex as you make them. Many have some standardized protection clauses in place, but there are unique solutions that can protect specific things in the form of riders.

Term life insurance

Term life insurance enables you to select periods where you are most financially vulnerable, such as having children, purchasing a home, growing a business, or aging. Terms are generally created for 10, 20, or 30 years and offer straightforward protection.

Permanent life insurance

Permanent life insurance protects you until an event occurs, such as a terminal illness, critical disability, or death. It is comprehensive and can give you peace of mind that you are holistically safeguarded.


Policies can be structured around your unique situation. A life insurance professional can help craft your ideal product depending on different factors, such as age, purpose, financial stability, assets, and succession planning.

When in Doubt, Seek a Professional

Planning for the future can be complicated, but it doesn't have to be with the right professionals by your side. At Heritage Financial Planning, we take a comprehensive approach to your wealth management and help you navigate the complexities of life.

We can help you decide which life insurance policy and coverage is right for you. Trust us to be there when you need us most, so you can cherish the good times with your loved ones. Contact our team today to get started. 

Written By: Heritage Financial Planning Team

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