In today’s day and age, getting life insurance coverage has become more important than ever. The increasing costs of healthcare and the fact that no one is guaranteed a future means that life insurance can provide peace of mind in knowing that your family will be financially secure if something happens to you.
However, many people mistakenly believe they do not need life insurance because they do not have any dependents. While that may be true in some cases, it is important to note that a life insurance policy benefits your loved ones and your future self.
Continue reading about the importance of a life insurance policy!
With your life insurance, you wouldn’t have to worry about leaving your family destitute after your death. It will take care of the expenses you would leave behind, such as your mortgage, credit card debt, medical expenses, and funeral costs.
Depending on the type of insurance you get, it can also pay to replace your income so that your surviving family can be provided with a constant stream of cash.
If you’re the sole provider in your family and have taken loans and debts, you may also want to get some life insurance to protect your assets in case you cannot pay what you owe before passing away. A life insurance policy can provide you with the funds to pay off your debt so you won’t leave your family saddled with additional financial burdens.
Make sure to consider all the liabilities while choosing an insurance coverage plan so your family receives the payout required to cover your debts.
Despite our fast-paced lifestyle and the advancements in the healthcare sector, fatal illnesses are still one of the leading causes of death worldwide. Being diagnosed with a fatal illness can be devastating for you and your family as it can lead to high medical bills and loss of income due to an extended hospital stay.
Several life insurance coverage plans offer you a lump sum payout in the event you are diagnosed with a fatal illness. In case of your demise, this payout can be used to pay for your medical bills and cover any loss of income your family may face.
Having life insurance also comes with significant tax benefits. The cash value of your insurance policy is exempt from taxes, so you can use it as cash in the future without incurring any penalties. In addition, your dependents can receive the death benefit tax-free as well. The withdrawals from your policy are also not subject to any tax.
Life insurance companies also provide you with the opportunity to save for retirement, as well as build up a fund for your dependents’ future education. These funds can be used to pay for your children’s college tuition, buy a house, etc. Depending on your insurance provider, you can also choose how you’d like to receive your benefit once you retire, such as receiving it as a lump sum or as a regular income stream.
Although planning for one’s demise may sound morbid, the importance of a life insurance policy lies in the sense of security and comfort it provides. With it, you’ll know that your family will be taken care of financially in case you were to pass away unexpectedly.
If you’re looking for a reliable life insurance agency, we’ve got your back! At Franklin Life and Annuity, you can find a suitable life insurance coverage plan for you for the protection of your family.