“A policy of life insurance is the cheapest and safest mode of making a certain provision for one’s family.” – Benjamin Franklin
Buying life insurance can be one of the most important decisions you can make in your life. It helps better protect your loved ones from any material hardship arise as a result of your untimely demise. Surprisingly, however, only an estimated 59 percent of Americans have life insurance, half of which are underinsured.
Many Americans think that, because they are young, healthy, or financially sound, they may not need life insurance. However, one can never predict when they might die and what financial consequences it could bring for the rest of the family. However, there is even more to life insurance than simply that. Continue reading to learn why having life insurance is so important.
Helps Deal with Any Outstanding Debt
At the time of your passing, your life insurance can be used to resolve any outstanding debt or other financial liabilities that may have been transferred to the family. House and car(s) are usually the biggest sources of equity for most families. Life insurance virtually guarantees that they don’t get foreclosed in case the bread earner dies and the rest of the family is financially unable to continue with the debt payment on them.
Pre-Death Benefits
Many life insurance policies feature accelerated death benefits. This basically enables you to be the beneficiary of your own life insurance policy; drawing funds from it to pay for treatment in case of a terminal or chronic illness.
The expense of healthcare is the primary reason why so many people go bankrupt. In the last years of your life, having the right life insurance coverage can help you avoid such outcomes.
Furthermore, if you purchase permanent life insurance, it can be a great way to supplement your retirement plans. A portion of your premiums will go towards a separate savings account in addition to your death benefit. What’s more, the money you can withdraw from this account is completely tax-free.
Protects Your Business
Having a life insurance policy can be purchased not only for guaranteeing financial safety for your family but also for your business. When a business owner unsuspectingly dies, profits and stock prices can immediately plummet. The funds from your life insurance can help the company manage through the uncertain time and keep afloat until investor trust is rebuilt and its financial figures start trending upwards.
In addition, in case of a partnership, your business partners can receive the death benefits and compensate your family with it, allowing the business to better survive the loss by not making itself liable for any payment.
Concluding Note
The best time to purchase life insurance is while you are still young. This is when the premiums on it are less expensive and you tend to have the highest debt burden (student loans and home mortgage). Purchasing life insurance through Renee Jackson Insurance Agency will grant you peace of mind that no matter how severe a crisis, the ones you care for will be covered should you go. Learn more or get a quote today by clicking here! https://reneejacksoninsuranceagency.com/personal-insurance/individual-life-insurance/.
Renee Jackson Insurance Agency is a local independent insurance agency serving Lexington, KY, Louisville, KY, and throughout Central Kentucky. For over a decade, we have offered a diverse portfolio of products along with dedicated, personalized service to our clients in the local communities we serve.
