It’s never too early to start thinking about life insurance, but sadly, many young people don’t. Many of those who have assume it is too expensive, so they do not have a policy. Life insurance is actually more affordable than you might think and will save your loved ones major headaches in the event of your passing.
We’ve put together this article to outline just a few of the many benefits of life insurance so that you can be better informed! Read on to learn what they are!
1. Financial Protection for Your Family
The average cost of a funeral ranges between $6,000 and $9000, not including cemetery fees and plots, monuments, flowers, and/or funeral luncheons. That’s a large amount of money that your family will need to pay just days after you pass, and that’s no small burden. A life insurance policy assures that they will have the money to pay those expenses.
There are many other final expenses that may also arise and life insurance provides the resources to tackle them. A surviving spouse may use the money to pay off a mortgage or keep educating the kids.
2. Life Insurance Death Benefit Payouts are Tax-Free
Not only does a life insurance policy provide a large sum of money at once to help your family after you pass, but also assures your family or beneficiary will receive the full amount without having to pay any taxes on it. That’s great because much of that money may already be accounted for with debts and final expenses, so not having to worry about them being taxed on a large amount of income for the year should help put your mind at ease.
3. Cash Value
Some types of life insurance have cash value. They act as an investment and accrue interest which you can borrow against while you are still alive, or just grow into a larger end of life payout. These policies are a great way to make your money go even farther for your family after your gone, or as equity to borrow from yourself later in life.
Choosing a Life Insurance Provider
Now that you know some of the key benefits of life insurance, let’s talk a little bit about how to choose a provider. You will want to look for the company that offers the type of coverage you want and compare rates between them. Some companies offer multiple-policy discounts, so be on the lookout for those as a way to possibly save some money.
Just be sure to get more information on how to choose the right provider.
The Benefits of Life Insurance are Worth the Investment
As you can see, the many benefits of life insurance are worth the cost of the policy. The earlier you get one, the more it will pay off and the longer you will enjoy the peace of mind that comes with knowing you have done what you needed to take care of your family after you are gone.
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