How do you plan for the future? Is your rainy-day fund enough to last if you were to lose your job? Does your monthly budget include savings for retirement? Are you prepared for any unexpected expenses that may happen?
You may have many things taken care of, but for a truly secure future, consider taking out a life insurance policy. If you were to pass away suddenly, would your family be able to pay the bills? Not to mention, funerals can cost up to $10,000.
A life insurance policy addresses many of these uncertainties and costs. Here are a few reasons to consider such a policy:
Ensure Your Loved Ones’ Financial Future
Consider what your family’s life would look like if you were no longer around. Even if you aren’t the only source of income, your family’s monthly revenue would decline in your absence. That can affect budgets and bills getting paid.
However, purchasing life insurance can ease the financial burden of your sudden loss because the death benefit can replace lost income. It will cover funeral expenses and help pay any outstanding debt, such as a mortgage or credit card payments, for example.
Long-Term Goals through Permanent Life Insurance
Some life insurance policies have the option to grow cash value. Permanent life insurance policies put a portion of your monthly premiums into a cash value account which can grow during the life of the policy. Of course, there are costs and you must make sure you fully understand how your plan works. Read all the fine print, ask questions, and talk with a financial professional about how this can contribute to your overall savings and financial goals.
Protect Your Business’s Future
If you own a business, you’ll want to ensure its stability after you’re gone. A life insurance policy will provide financial support to keep your business and your employees in good financial standing. You’ve worked hard to build your business—why not protect it for the future?
Next Steps
If you’re interested in purchasing a life insurance policy, speak with a trusted insurer. Learn what options are available before picking one. The two most common types of life insurance are term or permanent life insurance.
Term life insurance is coverage purchased for a specific period (usually 10, 20 or 30 years). Once the term is finished, you either let the policy expire or renew it. This plan tends to be a more affordable option. However, each time you renew your policy, your premiums will be based on your current age and health.
Permanent life insurance is a policy that provides coverage for your entire life. It is more expensive at the start since the chance the insurer will pay out the policy is higher. However, you do not renew it as long as premiums are paid. This is also the type of policy that can have a cash value account as discussed earlier.
Whichever type of policy you choose, life insurance can provide peace of mind about future uncertainties. We can’t always predict when death will come, but we can at least prepare for it. By taking out a life insurance policy, you know that you are doing everything you can to protect your family’s future.
