Family Breadwinner Family Life Insurance Case Study

The family’s breadwinner’s income should be protected by insurance because it provides financial protection for dependents and from creditors, tax benefits and a basis for savings. Most people don’t have an answer to the question of what they are to do if their main source of income were to suddenly die, or suffer from a traumatic, sudden physical ailment. Most people wouldn’t be able to sustain their current lifestyle, keep the lights on in their home or even keep it, let alone afford a college education for their children. Life insurance provides a failsafe for dependents by giving them a set amount of money upon the dependent’s death or sudden physical ailment for a number of things. For example, the money can be used to keep the dependent’s
Members of the family will have assessed their family’s total economic needs. This includes income needed to maintain an adequate lifestyle for them, extra expenses if the income producer dies, special needs of dependents, debt liquidation and liquidity. Next. The family will have determined what financial resources that will be available after death. Then, they will then take what they’ve assed for their family’s total economic needs and subtracted the financial resources available after death which equals the amount of additional life insurance required to protect their family. Afterwards, the family will need to take into consideration some life insurance underwriting to then come to the conclusion of which life insurance is right for them. The smart, well informed family will have done their homework and gone over the pros and cons of each type, comparing costs features, insurance companies and agents. They will have looked at the life insurance contract features and other policy features. The family can use online tools to assist them in their decision making process, to divide up the proceeds, and are aware of the breadwinners’ life