BENIFIT OF LIFE INSURANCE

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One of the most important things to remember about life insurance is that it’s not for you, it’s for them. Think about what would happen to your family if you passed away tomorrow, or next month, or next year. What would your family need to do to stay afloat financially? One in four people say they would feel the financial effects within a month if the primary wage earner in their household died, according to the 2020 LIMRA study.

 One of the main reasons people buy life insurance is to help their family cover daily expenses, including groceries, utilities, and car payments.  Think about all of the things your income covers. If your paycheck suddenly wasn’t there, your family would need an alternate source of income to pay for all of them. Since life insurance is typically paid out much more quickly than settling an estate, which can take months after death to complete, it can also provide support faster so your family i

 Life insurance money can help cover the mortgage if you pass away suddenly, so your family doesn’t have to move out or downsize. In fact, many people buy term life policies with lengths that match their mortgage. The longest term length available is typically a 30 year policy, which will keep you covered the whole way through if you have a 30 year mortgage loan. 

 If college will be part of your child’s future, having a plan to pay for it is critical. And even if your child’s plans don’t include college, they might want to learn a skilled trade or go through another program that needs funding.

With life insurance, you have a financial resource to help protect those dreams. When calculating your coverage amount, consider how many kids you have and the expected cost of schooling for each one. You may need to add in extra, depending on the type of school.

 If you’ve worked hard to build a business of your own, life insurance can help keep it afloat if you die unexpectedly. The payout from a policy provides a cash infusion to help cover payroll, inventory, and any immediate financial needs, and it’s cheaper than having to borrow from a bank or credit union.

If you have a business partner, you might need to have a life insurance policy that lists them as the beneficiary as part of your business arrangement and vice versa. This arrangement can provid

 You dream about it for decades and put money aside to make it happen. Retirement is one of the biggest and longest-term financial goals for families. If you die with a few years left to go before retirement, life insurance can help make sure that your partner gets to enjoy the life you dreamed of together. That’s why about three in 10 people buy life insurance to supplement their retirement, according to the 2021 LIMRA study.

Beyond the security of a cash payout if you die, there are a few other

  As mentioned above, permanent life insurance policies can provide financial support during your lifetime as well as after your death. Permanent life insurance lasts your whole lifetime as long as you pay your premiums, and it builds cash value over time. You can borrow from it tax-free or use it as collateral for a loan. That money can help you achieve big and small financial goals during your lifetime, including covering college costs, paying for home improvements, or paying for a big trip. I

  It’s not something people like to think about, but it’s an important expense to plan for. The average cost of a funeral is more than $9,000, and the costs of medical treatment or residential care can mean even bigger bills for your family to pay.

Life insurance can help cover costs that come up at the end of life. Final expense insurance is designed especially for this purpose. Since final expense policies provide a smaller death benefit, typically up to $35,000, these policies are usually very

   Want to leave something behind for kids or grandkids to help them reach their own financial goals? Life insurance is one of the easiest and most affordable ways to do it. You can also leave an inheritance to an organization, like a charity. Depending on how you do it, there might be some tax advantages involved as well. Talk to an accountant to make sure you maximize your tax benefits. 

   There are plenty of good reasons to buy life insurance, but it’s also important to remember that it comes with no strings attached. Your family can use the money for whatever they need, and the payout is generally tax-free. Every family’s needs are different, and so are their dreams. Ultimately, life insurance provides options – the kinds of options you would have worked to give your loved ones if you were there. If you’re not sure how much you need or what your family could use it for, start