The majority of us are aware we need life insurance but may not be sure how much, or if it’s within our budget.
Life insurance has helped people keep their promises for generations — and you don’t have to break the bank to do it. In fact, according to LIMRA, most people overestimate the cost of life insurance by as much as 300%. By working with your independent insurance agent, you can achieve peace of mind that, if the worst were to happen, your family’s financial future is secure. This is just one more way your agent can help provide financial protection for you and for your family.
The five reasons below are important to think about when you’re deciding whether or not it’s the right time to purchase life insurance.
- Income replacement
- If there are people who depend on your income, having a policy in place can provide for them if the unexpected occurred.
- Final expenses
- According to the National Funeral Directors Association, the average cost of a funeral, health care bills and other expenses total about $15,000. Could your loved ones manage those costs if the worst happened?
- Charitable contributions
- Naming your favorite charity as the beneficiary of your life insurance allows you to make a greater contribution than if you were to donate the equivalent of the premium dollars directly.
- Depending on the type of life insurance you choose, there is the opportunity to create a cash value that if not paid out, can be borrowed against or withdrawn on the owner’s request. Payment of life insurance premiums typically take priority, so it can be a great way to build a “forced” savings plan for yourself and your family. The bonus is that the interest is tax deferred (and also tax exempt if paid as a death claim).
- Being prepared
- You can never be sure if or when a serious illness can strike. Anything can happen. If you become seriously ill, you may not be eligible for as much life insurance as you need, if you’re eligible at all. Should you develop a terminal illness, life insurance can deliver financial support and take one more worry off your plate when you need to make the most of every moment.
These are just a handful of the important things a life insurance policy can provide for your loved ones. Your independent insurance agent can help you through this process and provide the term or whole life options available.
Take some time to think about them and then contact Lakeside Insurance Brokers to get started. Courtesy of Integrity Insurance