Life Insurance: Do You Need It?

At some point in your life, you’ll probably be faced with the question of whether you need life insurance. Life insurance is a way to help protect your loved ones financially after you die and your income stops. The answer to whether you need life insurance depends on your personal and financial circumstances.

Should you buy life insurance?

You should probably consider buying life insurance if any one of the following is true:

• You are married and your spouse depends on your income.
• You have children.
• You have an aging parent or disabled relative who depends on you for support.
• Your retirement savings and pension won't be enough for your spouse to live on.
• You have a large estate and expect to owe estate taxes.
• You own a business, especially if you have a partner.
• You have a substantial joint financial obligation, such as a personal loan for which another person would be legally responsible after your death.

In all of these cases, the proceeds from a life insurance policy can help your loved ones continue to manage financially during the difficult weeks, months and years after your death. The proceeds can also be used to meet funeral and other final expenses, which can run into thousands of dollars.

If you’re still unsure about whether you should buy life insurance, a good question to ask yourself is: If I died today with no life insurance, would my family need to make substantial financial sacrifices and give up the lifestyle to which they’ve become accustomed in order to meet their financial obligations (e.g., car payments, mortgage, college tuition)?

If you need life insurance, don’t delay.

Once you decide you need life insurance, don’t put off buying it. Although no one wants to think about and plan for his or her own death, you don’t want to make the mistake of waiting until it’s too late.

Periodically review your coverage.

Once you purchase a life insurance policy, make sure to periodically review your coverage — especially when you have a significant life event (e.g., birth of a child, death of a family member) — and make sure that it adequately meets your insurance needs. The most common mistake that people make is to be underinsured.

Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value.

Ameriprise Financial Services has a partnership with this financial institution to provide financial planning services and solutions to clients. The financial institution is not an investment client of Ameriprise but has a revenue sharing relationship with us that creates a conflict of interest. Details on how we work together can be found on ameriprise.com/sec-disclosure.

This information is being provided only as a general source of information and is not a solicitation to buy or sell any securities, accounts or strategies mentioned. The information is not intended to be used as the sole basis for investment decisions, nor should it be construed as a recommendation or advice designed to meet the particular needs of an individual investor. Please seek the advice of a financial advisor regarding your particular financial situation.

Ameriprise Financial is not affiliated with the financial institution.

RBFCU Investments Group is a financial advisory practice of Ameriprise Financial Services, LLC.

Before you purchase life insurance, be sure to consider the policy’s features, benefits, risks and fees, and whether it is appropriate for you, based upon your financial situation and objectives.

Securities offered by Ameriprise Financial Services, LLC. Member FINRA and SIPC.