| There are many things that are a key part of your | | | | organization, you will likely always want to have that |
| financial plan. Budgeting is important. So is investing. | | | | as an available gift to make. |
| Estate and tax planning are vital. One area you need | | | | However, for many other expenses, including your |
| to include is insurance. Insurance answers the | | | | loans, a temporary solution is better. For example the |
| question, "what if the unthinkable happens?" | | | | mortgage on your house or the loan on your car are |
| Unfortunately, too many people avoid the topic of | | | | both excellent loans to create insurance for. This |
| insurance because they fail to see the benefit. | | | | way, if you were to pass away while these |
| The benefit is this: they will have peace of mind that | | | | expenses are still present, they will be automatically |
| their loved ones will be taken care of if they die. So | | | | paid off at your death. And because you are |
| why are you reading about insurance on a site that | | | | matching the term of the loan to the term of the |
| has to do with loans? Simple. You may want to | | | | insurance, you are only buying insurance for as long |
| consider insurance to cover your loans so that if you | | | | as you have the loan. |
| were to pass away, your loved ones will not be | | | | For example, say you have a secured home |
| saddled with unexpected debt. | | | | improvement loan to last for three years while you |
| And, if you have a secured loan that your loved ones | | | | build an addition onto your home. At the same time |
| cannot cover, you do not want your assets seized | | | | you take out a three year term insurance policy for |
| to cover the loan. That will add tragedy to tragedy | | | | the same amount as the loan. |
| for your loved ones! | | | | If you were to pass away in the second year, the |
| So how do you know what kind of insurance to get | | | | insurance would pay your loved ones the full amount |
| to cover your loans? Or any expenses at all, for that | | | | of the loan, of which they can use two thirds of it to |
| matter? The easiest thing to do is to determine the | | | | pay the remaining portion that is still outstanding on |
| length of time that a particular expense will be | | | | your loan. |
| present in your life and get insurance that matches | | | | People do this for many kinds of loans, including their |
| the term of the expense. | | | | mortgage, their automobile loans, and any other kind |
| For example, any death or estate tax will always be | | | | of loan they have. It's an excellent way to ensure |
| present in your life because no matter when you | | | | that your loved ones are not going to be saddled |
| pass away, those expenses will be incurred. Also, if | | | | with debt if tragedy should strike. |
| you want to bequeath a gift to a charitable | | | | |