Life insurance serves one primary function: it provides financial security for your family when you're gone. It works by paying out a death benefit to your designated beneficiaries upon your passing, which gives them security. The money can be used for anything they need or want, including funeral expenses, paying off debts, supporting your family's income, or funding future goals like college education or buying a new home. Making plans for your estate can be stressful, and thus, in 2023, only about half of American citizens had life insurance, but that number is growing. We're here today to examine four reasons you should get a life insurance policy.
1. Provide Financial Security for Your Family
The primary and most obvious reason for life insurance is that you can leave financial resources for your family. In death, a two-income household becomes a one-income one. But beyond that, burial or cremation can range between $5,000 and $10,000. Life insurance will ensure that your family can cover your services, help them maintain their quality of life, and maintain the financial plan you helped lay out for the future.
2. Live a More Stress-Free Life
As we all know, death is both inevitable and unpredictable. No matter what kind of insurance you purchase, you are buying coverage and peace of mind. Having a life insurance policy and knowing your affairs are in order and your family is provided for will allow you to enjoy the rest of your life. You can spend your days present and in the moment with your family, knowing that they will be cared for because of the financial planning you did.
3. Enjoy the Financial Benefits of Investing in a Life Insurance Policy
Life Insurance policies that are paid out in a single payment are usually tax-free, meaning your family can use the full amount you leave behind. One note, this can change if the policy is paid out in installments, but this is why you should work with an insurance agent when making purchasing decisions. A whole policy can provide additional financial benefits because they are designed to have investments grow. When they reach the point where the investments generate more income than the policy costs, the policy essentially pays for itself.
4. Leave Some Good Behind
Even if you don't have beneficiaries, or your circumstances change, you can choose to donate your policy to a charity of your choice. For those looking to leave some good behind after they are gone, this is a great option.
Making sure your affairs are in order is a necessary part of life and having a life insurance policy is one part of that. Whether you do it to take care of your loved ones, reduce your stress about what happens to your family after your death, or you just want to donate to a charity, a life insurance policy is a smart idea. If you'd like to learn more about setting up a life insurance policy, reach out to us today!
