No one is willing to consider death for us or for those we love.Many people equate life insurance with death.And even in the worst case, it can do a lot of other things, and it does not have to exceed the budget when it is implemented.Consider the following important reasons for considering life insurance:
1.it is part of a reasonable financial plan
Inadequate coverage can have serious consequences for many families.If 10 families do not have any life insurance, one-fourth of them will face immediate cost of living problems if their main wage earner dies.Life insurance helps to plan for the long-term health and well-being of your family members and reassures you that they are financially protected.If a person will suffer financial loss after death, life insurance is required, just as a savings or checking account is required.The death benefit from this policy can help your family meet many important financial needs, such as funeral expenses, daily living expenses and University expenses.
2 it is not as expensive as you think
Many consumers believe that life insurance is either too complex or too expensive to consider, which poses an obstacle to ownership, with only 57% of people owning life insurance in 2019.In fact, life insurance is cheap and you think it’s easier to obtain.For example, for a healthy 30 year old person, they can obtain 20 year term life insurance, of which $250,000 is insured for approximately $13 per month.When you break down your life, it’s easier to budget and have less fear of thinking.
3 it establishes cash value over time
Permanent life insurance has a cash value or a cash surrender value, which means that it can establish a cash value over time in addition to providing death compensation to beneficiaries.Like most pension and tuition savings plans, the cash value can be accumulated on a deferred tax basis and used for any purpose you want in the future – housing, down payment of university tuition fees, or even retirement income.
This is a good choice as the borrowing rate is often relatively low and it does not rely on credit checks or other restrictions.But keep in mind that you will ultimately be responsible for repaying any loans as required to ensure that the beneficiaries receive the death benefits you envision for them.
4 life insurance can be more than life insurance
Participating in life insurance contracts or certain types of insurance policies can increase the insurance coverage.For example, you may have a life insurance policy, sometimes referred to as a hybrid policy, which includes long-term care benefits that are used to pay for long-term care services.If you need this feature, you can use it, otherwise the beneficiary will receive a death benefit.There are many riders available that can help you customize and expand coverage.
5 it can help you to maximize your retirement
If the financial obligations assumed by you at the time of the first purchase of the permanent life insurance policy have been terminated, your policy can be reborn and benefit your retirement life.With the right structure, your insurance policy can provide supplementary retirement income through policy loans and withdrawal and even long-term care benefits.Life insurance can also maximize retirement benefits by supplementing the income of the surviving spouse, or by establishing a life insurance trust to allow you to inherit from a person other than your estate (usually avoiding estate and income taxes).