You know life insurance is important, but maybe you don’t know why. Life insurance can help your family prepare for the future by paying off outstanding debts and providing financial assistance when your loved ones need it most. It also provides peace of mind and a sense that you’ve done right by them even after death. Here are five top reasons why everyone should have life insurance:
Pay Outstanding Debts
Life insurance can be used to pay outstanding debts.
There are many people who have outstanding debts, whether it’s a mortgage or credit card debt or a loan for a vehicle that has been repossessed. Life insurance can help you pay off these debts and keep your family from financial hardship when the unexpected happens.
Life insurance also helps with funeral expenses and other end-of-life costs
If you pass away without having taken out a life insurance policy, your family could be left with large bills they cannot afford to pay on top of their grief and sadness at losing someone they love dearly. Life Insurance can help cover these expenses so that loved ones do not have to worry about paying them off right away after losing someone close to them in an accident or illness
Protect Your Family
You can protect your family from the financial hardship of losing you by purchasing a life insurance policy. If you pass away and do not have an estate plan in place, your family will have to pay for your funeral expenses. They would also be responsible for paying off any debts you may have left behind, including mortgages and credit cards. Life insurance can help offset these costs because it offers a lump sum payment upon death that can be used to settle outstanding debts or cover funeral expenses.
Another benefit of life insurance is that it helps protect against estate taxes. If an individual has more than $11 million dollars worth of property at their death, they are subject to paying federal estate tax on the amount over this threshold (this figure changes from year-to-year). With proper planning and some strategic investments in life insurance policies, families who would otherwise be affected by these taxes may avoid them altogether when their loved one passes away.
Cover Future Expenses
Life insurance can help cover future expenses. You can choose to receive the death benefit when you die, or you can have it paid out over time to your family. If you pass away, your family will be able to use the money from the policy to pay off medical bills and other debts that might be left behind.
If you have life insurance in place, this means that should something happen to you, there will always be enough money for them to live comfortably without having to worry about paying off those debts themselves.
Get Added Perks
Many people don’t realize that life insurance policies often come with added perks. These can be included in the premium or not, but it’s important to know what you may be getting for your money.
Common perks include:
- Dental and vision coverage
- Flexible spending accounts (FSAs) that allow you to put aside pre-tax dollars to use toward eligible expenses such as medical bills, dependent care expenses and more
- Disability insurance
Life insurance can help your family prepare for the future.
- Life insurance can help your family prepare for the future.
- Life insurance can help pay off debts.
- Life insurance can help protect your family’s financial security.
- Life insurance can cover future expenses, such as college tuition or retirement expenses.
We hope that you now have a better understanding of the many benefits of life insurance. As we mentioned earlier, there are many factors to consider when choosing the right policy for your needs, but there’s no doubt that this type of coverage can be an invaluable asset for your family if anything were ever to happen.