Some of the benefits of life insurance appear obvious to most of us, but others might surprise you. There are many great reasons to purchase a life insurance policy, here are six of them…
Provide money for your dependents. This is the benefit most people associate with life insurance. When you die, your policy will pay a specific amount of money (called the death benefit) to your survivors. The most important reason to enroll in a life insurance policy is to provide for your loved ones in the event of your death. And remember, it’s not just wage earners who need a life insurance policy. Everyone has final expenses, such as burial or cremation.
Leave a legacy. You probably want more than subsistence for your loved ones. The lump sum of a death benefit can be used to cover taxes on your estate, pay for college tuition, set up trust funds for children, leave a gift to a favorite charity, and more. A life insurance policy allows you to leave behind something meaningful to the people you care about.
Tap into cash value. Some types of life insurance build cash value, that you can tap into via a loan against the policy. You can use this cash value for emergencies or even to help fund your retirement one day.
Access needed income if you get sick. Some life insurance policies include a clause, called a rider, that allows you to receive a portion of your death benefit if you become chronically or terminally ill. This rider can allow you to handle expenses and support your family during one of life’s toughest moments.
Lower your tax burden. Some loans against the value of a permanent life insurance policy can be taken as tax-free income. And the death benefits from both term and permanent life insurance policies provide your beneficiaries with a lump sum of untaxed income when you pass away.
Protect your business. In the event that one business partner dies or becomes disabled, the right life insurance policy can aid in business continuation by facilitating the transfer of ownership. This way you don’t have to worry about your business being interrupted, and your employees will be protected, too.
Give us a call to discuss these benefits of life insurance, and we can help match you to a policy that suits your individual needs.