Life insurance is a benefit that no family that is concerned for its financial security should do without. It pays a death benefit to your loved ones if you die. However, it can play a role in your financial security in the present day, too. What’s important to you is to choose the best policy for your needs. Consider the advantages of just how helpful this coverage can be for you both now and in the future.
Benefit 1: Life Insurance Pays Your Final Expenses
Life insurance insures someone’s life, and it will usually pay its
greatest benefit after the insured person’s death. After all, if you die, then your family might need help paying for funeral costs, legal assistance in settling your estate and other final expenses. In the long run, they can also use a life insurance settlement to cover expenses that your income helped them meet when you were alive.
Benefit 2: You Can Use Life Insurance While You Are Still Alive
If you buy a whole life insurance policy, then your plan will remain active as long as you continue to pay for it. Even if you die fifty years from now, a whole life policy can be there to help.
However, these plans also can provide returns during your lifetime. For example, many whole life plans offer cash value options. With this benefit, a portion of your premium acts as an investment and accumulates value in an account over time. You can draw on this account as a source of income.
Benefit 3: You Provide Loved Ones with Support
No matter how hard you work to save money, you still might want to give your family as much security as possible after your death. Life insurance allows you to create this financial legacy. For example, you might buy a policy specifically for a child or grandchild’s future education needs. Therefore, they’ll receive this money even if you can no longer provide it.
Benefit 4: You Might be able to Borrow Against the Plan
Besides cash value benefits, some whole life plans also offer you a chance to borrow against your policy’s death benefit while you are still alive. However, your insurer will consider this a loan and you will have to repay this money, usually with interest attached. Still, it is a solution that could help you receive financial assistance while you are in a pinch.
Life insurance is certainly something that everyone should consider buying because of how much help it might provide both you and your loved ones. Still, it is important to compare your options. That’s why one of our dedicated insurance agents will work with you to consider the advantages of all shapes and sizes of plans. That way, you’ll land on the one that is best for you.