Life insurance provides peace of mind to loved ones after an individual passes, covering debts or expenses without tax or delay penalties being assessed to beneficiaries.
Many Americans still lack life insurance due to cost or other financial priorities; or simply due to confusion about which type to purchase.
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It’s a necessity.
Life insurance provides financial security to ensure their loved ones in the event of their death, with tax-free cash payouts for dependants that can cover funeral costs, outstanding debts, and mortgage payments owed after their passing. Your choice of policy will depend on your own unique needs – term life is often the least costly option while adding riders can add coverage in exceptional situations.
Life insurance policies not only offer lump sum payouts but can also offer regular income payments over an extended period. This feature can be beneficial to parents of special needs children or elderly people without significant savings or assets,. In contrast, others may purchase life policies solely to cover funeral costs.
Life insurance provides many advantages, yet many don’t purchase it due to underestimating its costs. According to LIMRA’s 2021 Life Insurance Barometer Report, nearly one-third of people who need life insurance do not currently possess it.
It’s a good idea
Life insurance provides your loved ones with a tax-free cash payout upon your death, helping to cover funeral costs, debt payments, and mortgage repayments as well as unexpected expenses that arise. In addition, specific policies build cash value over time which can then be used either to pay premiums or fund a lump-sum benefit payment.
Life insurance policies offer another valuable purpose – to create an inheritance for your heirs. This can be especially helpful for families with special-needs children as the policy’s death benefit can cover caretakers and expenses associated with special needs caregiving arrangements. Furthermore, purchasing life insurance may help offset estate taxes, which can burden those with substantial assets.
Life insurance can also be helpful if someone relies on you financially – for instance a partner or business associate would suffer financially without you; life insurance can help them take over your share in the company and continue operations without having to shoulder all expenses alone. Life insurance policies also can benefit older adults without substantial savings as the death benefit could cover care or other costs that come their way.
Although many perceive life insurance to be expensive, its true cost can be more affordable than many believe. Costs depend on factors like age and health; you could obtain a quality policy for just pennies per day!
It’s a good investment
Life insurance policies can provide your loved ones with financial security after you are gone, helping to cover expenses and debts or helping during difficult times. Furthermore, contingent beneficiaries can be added so that a portion of the death benefit would go their way if something happened to them.
Your death benefit will be distributed in one lump sum, making life easier for those left behind by relieving them from paying debt or estate taxes. Furthermore, this money could cover mortgage balances so your loved ones won’t need to sell the house, and it could even help cover college tuition for your children.
Term life policies tend to be the most cost-effective solution, covering terms from 10 years, 20 years, and 30 years. You may even qualify for simplified issue options that speed up underwriting – skipping medical exams altogether while processing applications within days or weeks.
Permanent life insurance policies offer tax-free cash value accumulation that can be borrowed against, though outstanding loans will reduce the death benefit. They’re excellent investments for retirees looking for extra funds, although it’s wise to consult a financial planner before making any decisions on life insurance policies.
It’s a good way to protect your family
Life insurance can help protect your family and property in the event of your death by offering them access to a tax-free lump sum which they can use however they see fit – usually to pay bills and debts, cover funeral costs or fund their education costs. Furthermore, it could help them continue making support payments such as alimony or provide funds for trusts.
Life insurance policies provide essential financial protection to ensure the well-being of loved ones in the event of your death, with costs starting as little as a dollar per day depending on which policy type and coverage amount is chosen. You may even add contingent beneficiaries who will receive benefits should your primary beneficiary predecease you.
Life insurance policies are most cost-effective for young and healthy individuals when purchased early, so it is wise to secure one early. Most insurers offer simplified underwriting that bypasses medical exams and can process applications within days or weeks. It would help if you also met with an experienced financial professional in person to assess your needs and make decisions best suited for both you and your family.
Consider purchasing additional life insurance policies to supplement or cover unexpected expenses. Many employers provide life insurance as an employee benefit and you can typically add coverage through payroll deduction.