Insurance is important for everyone. There are many different kinds of insurance products on the market today. All of them offer protection for different circumstances.
Many of us have health insurance, dental insurance and car insurance. We have homeowners and renters’ insurance for our dwellings, and we take out travel insurance policies on our vacations. Another common insurance product is life insurance.
There are many different companies that offer life insurance products. Take some time to compare products and services at Insurance Hero and other sites. You can learn about coverage amounts, monthly premiums, read customer testimonials and even request a quote online.
Here are a few important benefits of having life insurance:
1. It can pay final expenses. Life insurance is primarily used for funeral costs when the insured person passes away. It can also be used to cover any medical bills that aren’t covered by health insurance, any fees that originate from executing the deceased person’s estate and other financial obligations. Unpaid loans and mortgage balances are also some of the things that can be covered by a life insurance policy.
2. It can pay estate taxes. When an insured person passes away, their loved ones not only have to be concerned about the funeral arrangements. They also have to consider any estate taxes that may come due. A life insurance policy can cover any state or federal estate taxes that need to be paid. Depending on the type of policy and coverage, such taxes could be partially or completely covered by life insurance.
3. It can pay for funeral and burial expenses. For those that are beginning to plan for their future and are worried about their final wishes being left on the shoulders of their family, funeral insurance is the type of life insurance you’re looking for. Companies like Everdays can help you figure out exactly what your needs are and ensure they are covered when the time comes to begin your senior planning.
4. It can be a charitable contribution. Many people list a favorite non-profit organization or charity as their beneficiary. It’s a good way to leave a legacy for future generations and help others in need long after you’re gone. Talk to your insurance agent if you are considering this as an option.
5. It gives quick access to cash when you need it. Many life insurance policies build cash value over time. You can access these funds when necessary to fund business costs, education expenses or even retirement income. Read your policy information carefully to see when cash can be withdrawn and if there are any restrictions or limitations to this option. Some policies even give you the option to cash it in or convert the policy into an annuity which can generate additional income for you and your family. Another option to cash in on your life insurance policy is to get a life settlement. Life settlements allow you to get a lump sum for your life insurance, which protects you against future increases of premiums.
6. The death benefit can protect your family. The death benefit on many life insurance policies can help surviving family members with bills and other income needs. It can aid them in living a comfortable life long after you’re gone.
7. It keeps you insurable. Locking into a life insurance policy provides coverage throughout your entire life as long as the premiums are paid on time. It also keeps you insurable, no matter if your health or economic situations change.
These are just some of the many benefits that having a life insurance policy can have. Most policies are relatively affordable, and you may be able to qualify for a discount if you already have other insurance coverage with your insurance agent. While it may not be pleasant to think about, a good life insurance policy can provide for your funeral and related expenses and can protect your family and your assets for many years to come.
