Taking some time to consider the importance of life insurance is a worthwhile endeavor, since it can mean financial protection for you and your family. Although it's a sensitive topic, once you become familiar with the benefits of life insurance, you will appreciate how it can empower you and your family.
Here's a look at five reasons why you should consider buying a life insurance policy.
One of the most important reasons for getting life insurance coverage is to provide a safety net of support for your family after your death. Most people don't have a large amount of savings that could match what a life insurance policy can pay out to their family upon their death. The plan pays beneficiaries according to what is stated in the policy.
The type of life insurance policy determines payouts. A whole life insurance plan can pay you benefits during periods when you are unable to work. Unlike a term life plan, a whole life plan has a cash value that grows over time. You can withdraw from it or borrow against it. A universal life plan also provides cash value.
So why doesn't everyone have a whole life plan? For one reason, it's more expensive than a term life plan. Nonetheless, it provides benefits to you even while you're alive. It's especially helpful for self-employed independent contractors and business owners. A whole life plan provides financial clarity in that you will have access to funds in times of emergencies.
Some debts may expire when you die, others may not. Instead of your loved ones being left to struggle with your unpaid bills, your life insurance policy pays off the debt. It shows you care about your family's well-being and do not want them to be responsible for your debt. Not only can a life insurance policy pay off your credit card debt, but it can also pay off debts from your mortgage or student loans.
Debt is another topic many people have a hard time discussing. Credit cards can start off as convenient and then feed an addiction to buying sprees. Consequently, an individual can accumulate so much debt there's no way they can pay it off during their lifetime as compound interests accrue on them. A whole life insurance plan can erase this debt and provide additional funds to your loved ones.
Many people don't like to think about their funeral expenses, which can be thousands of dollars. However, if you have a family and don't plan for such expenses, it can leave them wondering how to pay for them. Once again, a life insurance policy can help them out, as it covers funeral-related expenses. Your family will receive a death benefit and will be able to use some of the money to pay for final expenses.
Life insurance gives your survivors money to establish their careers by studying at a learning institution that reflects their interests. Providing your family with such resources will help them maintain financial stability.
These are a few crucial ways in which life insurance can support you and provide for your loved ones even after your demise. Contact us at Liberum Insurance for more information on how to get the right life insurance plan for your unique needs.
Liberum Insurance is an Independent Agency. We have access to top A-rated carriers so we can provide great coverage at competitive rates. Our priority and fidelity are to our clients first.
