Life can be busy and many of us get caught up in the day-to-day, making it difficult to focus on the future. This is especially true when it comes to goal-setting concerning finances. It’s tough to think about our financial position 30 years from now when we have to pay for life expenses today. But when it comes to life insurance, waiting until it’s too late can be detrimental.
Life insurance is a system set up to give you peace of mind while you’re living and financial protection for your family when you pass away. It’s not ideal to think about the days when you won’t be around anymore, but it’s especially devastating to be burdened with knowing that your loved ones must take on financial burdens and stress while they’re grieving.
The best way to prevent this burden, and ensure that your loved ones are well-provided for is by buying life insurance.
Life insurance has many benefits. Some that take effect after you’ve passed, and some that you can take advantage of while you’re still living.
Let’s take a look at 5 Advantages of Life Insurance.
Final Expenses Coverage
The first immediate benefit of life insurance is that your coverage can pay for all your final expenses after you pass. Final expenses are all the costs involved with a funeral, viewing, and burial. These expenses may include embalming, cremation, caskets, grave markers, transportation, memorial flowers, and officiant fees. These costs add up quickly. Therefore, having a final expense policy ensures that your loved ones will not have to pay out of pocket or use credit to pay for final expenses. These funds are also typically immediately accessible and family members do not have to wait as long as with a large death benefit payout.
Living Expenses Coverage
Do you have people who depend on you financially? You may have a spouse who doesn’t work outside of the home or minor children who have not yet grown up and moved out on their own. If you were to pass away while they are still in the home, how long would they be able to cover all financial responsibilities before they no longer had financial security? Purchasing life insurance is a smart way to ensure that your family has a financial plan if you are no longer around to provide. If you only need coverage while your children are young, a term life insurance plan provides coverage at a set price while your family is young, then as they age and no longer depend on you, you can switch to a plan with less coverage or you may be able to convert to permanent life insurance as a long term solution.
Life insurance policies are not one-size-fits-all. Many life insurance companies offer different types of life insurance with different options such as the option to use life insurance benefits while you are living if you are diagnosed with a terminal illness. These accelerated benefits riders allow you to use your benefits to pay for care and living expenses. In some cases, some policies may even offer a Waiver of Premium rider that allows you to waive your premium if you become extremely ill or disabled and cannot afford payments.
When you purchase whole or universal life insurance you have the option of accumulating cash value that you can use as a sort of retirement supplement. In many cases, using life insurance as a supplement to retirement also has tax benefits as income tax does not apply to life insurance withdrawals. This type of policy can allow you to draw cash to pay for expenses later in life such as car or home purchases. These plans are an excellent option for those who need higher life insurance coverage at younger ages, but who do not need as much coverage as they age, but do not want to lose or drop their policy. Of course, this type of plan should only be used in addition to an IRA or 401K plan.
Typically, receiving a death benefit through a life insurance policy is a tax-free inheritance. This means that your loved ones will not have a tax burden if they receive a lump sum from a life insurance payout when you pass, unlike receiving a large amount from your estate through a will. Rather than placing more funds into your own estate, if you know you have a large sum you’d like to pass on to your loved ones, using a life insurance policy is a great way to save and ensure that more money ends up in your family members’ pockets.
Securing Life Insurance
Do you have more questions about the advantages of life insurance? Our team at Patriot Insurance Brokers is here to help every step of the way. Our agents have the expertise to answer all of your questions and help you determine the coverage amount you need based on your lifestyle and circumstances.
We pride ourselves on offering elite protection while maintaining flexibility to meet all of your needs. We put your interests first and help you to protect what matters most by working with the top life insurance companies in your area. We can explain all of your options and sign you up for the right plan for you quickly and efficiently.
Call us today with all of your life insurance questions. We look forward to working with you.