How to Determine if You Need Life Insurance

Video Transcript

"Hi, my name's Seann McWhorter, I'm the agency principal of Insure Right Insurance Agency, located in Lehi, Utah. We're here to talk about insurance ins and outs, and specifically how to determine if you need life insurance. Well, this is an age old question. If you asked a hundred insurance agents how to determine whether you needed life insurance, you'd get five hundred answers. In my opinion, if you're alive you need some life insurance. If you're going to retire you need life insurance. If there's a possibility that you're going to die, and have any other dependents, you're going to need life insurance. If you a large estate, it would make sense to have life insurance. There are many pundits out there that say you only need term life insurance. Some people propose that you need permanent or whole life insurance. Well, I've never heard of a widow that asked when she received the death benefit check, was this term insurance or was this whole life insurance. There are many reasons for needing life insurance. For example, if you have dependents that depend upon you for income or support of any kind, there's a definite need for life insurance. If something were to happen to you, you'd be providing a source of income for your clients. Keep in mind life insurance, all life insurance is, is money when you need it the most. And you're buying it at a discount. There are people that need life insurance for business planning. There are many, many business scenarios where life insurance is required, or very, very helpful. For example, if you have a key employee, that without that person would devastate your business, it would behoove you to have a life insurance policy on that key employee, so that if something happened to that person, your business would not completely fail--because of that it would give you that cushion of cash that you need to go out and find someone else, and to perpetuate the business long enough to be able to do that. There are other needs for life insurance in estate planning, to offset estate taxes and whatnot. Really, it would be wise to sit down with your life insurance professional to discuss all of the different needs that--for life insurance in your life. I highly recommend that you do that. Look at your needs. And there are always--there are always things that life insurance can take care of."