Most people think that having life insurance is a financial burden, especially for those living from paycheck to paycheck. However, little do they know that life insurance is vital not only for the payer, but also for the beneficiaries. Still, they consider life insurance as an expense they can’t afford.
But the financially sound know that having life insurance is worth their paycheck. Even wealthy individuals avail various kinds of life insurances.
It’s not yet too late to avail life insurance. Getting it will pay off in the future because of the following reasons:
Provide Financial Security To Your Loved Ones
One of the most important reasons why you should have life insurance is to ensure the financial security of your loved ones when you die. If you’re one of those hard-working people who don’t invest in life insurance, you’ll probably leave your family devastated both emotionally and financially after your passing. Especially if you’re the breadwinner, your family may find it hard to adjust without you.
But with life insurance, you can protect the economic well-being of the family you leave behind. It’s because when you die, your family can receive a tax-free death benefit via your life insurance. Thus, your loss won’t throw your family into a financial crisis. Instead, they can use the death benefit to sustain their lifestyle or to start anew.
When you’ve got an aging parent or a disabled loved one, then that’s all the more reason for you to have life insurance. This is because when you pass away, you’ll leave them with something they can use for their disability care and basic needs.
What’s great about life insurance is that only the stated beneficiary can claim the death benefit. Thus, unauthorized persons can’t claim it. Moreover, applying for life insurance doesn’t have to be a complicated process. At Sagicor Life, it’s quite easy to apply for an insurance policy. You can even receive approval within the day, so it need not take up too much of your time.
Pay For Your Burial Expenses
Aside from ensuring the financial security of your family when you’re gone, they can even use your life insurance to cover your funeral expenses. Mind you, funeral services are costly, even the basic ones. If you have not prepared and made prior arrangements, your family will suffer this financial burden.
But with life insurance, your family won’t have to spend on your funeral and burial services.
Nowadays, most life insurance providers offer a final expense plan that caters to burial insurance. This way, you’re only paying one provider, although you would have to pay for an additional policy.
Unlike the ordinary burial insurance, life insurance with a final expense plan qualifies many people. For ordinary life insurance policies, you may need to undergo and pass a medical exam to avail such benefits. However, if you choose a provider that offers a final expense plan as part of their policy, your chances of having it are higher.
Furthermore, if you do avail such a plan, you won’t have to pay a lump sum for your burial services. It’ll be easier to pay according to your budget so you can pay flexibly. Most importantly, you can pay such funeral costs according to the present rates. With such, your family can avoid paying more expensive funeral costs since they get higher with the passage of time.
Cover Estate Taxes
If you’re leaving a significant amount of estates to your inheritors, then they may need to settle estate taxes before they can claim what you’ve left for them. One way to combat such charges is to have life insurance. Not only can they use it to cover your funeral and burial expenses, but your loved ones can use the death benefit to pay for such taxes.
Especially when your estate deals more with properties, federal taxes can eat up your family’s finances. Mind you, they only have an average of nine months to pay such taxes. If they don’t have the financial capability to pay off the taxes, they might need to sell off some of their assets. Doing so may make them end up selling the assets at low prices.
So if you want to use life insurance to cover for such taxes, it’s recommended to have universal and whole life insurance plans. That way, it can cover such concerns, unlike term life insurance which may expire before you depart.
So if you want to make your inheritors’ lives more comfortable when you’re gone, think of this benefit of life insurance.
Save Your Business
Aside from estate taxes, your life insurance can save your business as well. Whether you’re a key person in your business or you’re in a partnership, you should have life insurance. Not only will it save your business, but it can also save your partner from unnecessary burden.
For instance, if you’re a key person in the business, availing life insurance can help in financing the recruitment, hiring, and training of someone to replace you. A key person means someone having a particular skill which is vital to keep the business running. The loss of this can even lead to bankruptcy.
So if you end up passing away, the business you leave behind can use the death benefits to find your replacement, which may cost quite a lot.
As mentioned, losing a key person can harm the business financially. Without you, the business could lose profit. But with the death benefits, you can ensure your business’ profitability.
Your beneficiaries can even use the profit saved in this way to pay off your business’ debts. Instead of selling or foreclosing the business, your loved ones or business partner can use the death benefits to pay off your business loans. As a result, they can save your business and continue operating it.
Maximize Your Retirement
Well, having life insurance doesn’t only mean securing your bereaved family when you die. A permanent life insurance policy can help you enjoy your retirement when you outlive your insurance.
Some life insurance allows you to use your policy insurance as an option for long-term care if you outlive your insurance. Others even allow conversion of your insurance to a lifelong income stream. Thus, you can have an alternative pension per se.
If you think that having life insurance is only adding to your expenses, then think of the future benefits. Think of your bereaved family who can gain from your life insurance when you pass away. Aside from giving financial security to let them live a comfortable life while adjusting, they can even be free from the burden of paying your funeral or burial service costs. With such, they can mourn your death without worrying about expenses.
And if you’re leaving them with inheritance, you wouldn’t want them to end up paying estate taxes. Because they can use the death benefits to pay off the estate taxes, they can claim your estates without financial worries about taxes.
Not only that, but life insurance can even save your business from loss of profit or bankruptcy. Let them use your life insurance to look for someone to replace you, or cover your business loans and expenses. Lastly, when you outlive life insurance, you can use it to maximize your retirement life.