Financial expert Marion G. Cuff, CFS®: Life insurance: do you need it?

At some point in your life, you will probably be faced with the question of whether you need life insurance. Life insurance is a way to financially protect your loved ones after your death and the cessation of your income. The answer to whether you need life insurance depends on your personal and financial situation.

Should I take out life insurance?

You should probably consider getting life insurance if any of the following are true:

• You are married and your spouse depends on your income

• You have children

• You have an elderly relative or disabled relative who depends on you for support

• Your retirement savings and your pension will not be enough to support your spouse

• You have a large estate and expect to owe property taxes

• You own a business, especially if you have a partner

• You have a major joint financial obligation such as a personal loan for which another person would be legally responsible after your death

Either way, proceeds from a life insurance policy can help your loved ones continue to manage their finances through the difficult weeks, months and years following your death. Proceeds can also be used to cover funeral costs and other final expenses, which can run into the thousands of dollars.

If you’re still unsure whether you should get life insurance, a good question to ask yourself is: if I died today without life insurance, would my family have to make substantial financial sacrifices and give up she has to get used to in order to meet her financial obligations (eg, car payments, mortgage, school fees)?

If you need life insurance, don’t delay.

Once you decide you need life insurance, don’t delay buying it. While no one wants to think and plan their own death, you don’t want to make the mistake of waiting until it’s too late.

Periodically review your coverage

Once you’ve purchased a life insurance policy, be sure to periodically review your coverage, especially if you have a large

life event (e.g. birth of a child, death of a family member) – and make sure it adequately meets your insurance needs. The most common mistake people make is being underinsured. For example, if part of your life insurance proceeds are to be used for your child’s college education, the more children you have, the more life insurance you will need. But it’s also possible to be overinsured, and that’s a mistake too – the extra money you spend on premiums could be used for other things. If you need help reviewing your coverage, contact your insurance agent or broker.


Securities and investment advisory services offered by FSC Securities Corporation (FSC), Member FINRA/SIPC. FSC is a separate property and other entities and/or trade names, products or services referenced herein are independent of FSC.

Working with an advisor who holds the CFS designation does not guarantee investment success. Securities and investment advisory services offered by FSC Securities Corporation, Member FINRA/SIPC and a registered investment adviser. The Grace Financial Group is a marketing designation.

Broadridge Investor Communication Solutions, Inc. does not provide investment, tax or legal advice. The information presented here is not specific to an individual’s personal situation.

To the extent that this material relates to tax matters, it is not intended or written for use, and may not be used, by any taxpayer for the purpose of avoiding penalties which may be imposed by law. Each taxpayer should seek advice from an independent tax professional based on their personal circumstances.

These materials are provided for general information and educational purposes based on publicly available information from sources believed to be reliable. We cannot guarantee the accuracy or completeness of these materials. The information contained in these documents may change at any time and without notice.

The Grace Financial Group

Marion G. Cuff, CFS®

Founder and Finance Professional

128 Seneca Lake Road Sparta, NJ 07871


[email protected]

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