It is common to regard life insurance as a discretionary expense, one that’s not entirely necessary. Insurance in general gets a bad reputation, with many paying into it for few tangible benefits. But in the end, life insurance is about protecting your family from unexpected financial burden. It’s not just a fee, but an asset that protects your loved ones’ futures. If you’ve been holding off on purchasing a life insurance policy, there are more than a few good reasons why now may be the best time.
Ensure a stable financial future
Death is never timely, but if you pass away unexpectedly, you’ll likely leave several large expenses to your family. This could make things even harder for them, especially if they depend on your income. According to the Insurance Information Institute, financial professionals highly recommend a life insurance policy as part of any solid financial portfolio. Owning a life insurance policy is a major step toward securing a safe financial future for your loved ones. With help from a death benefit, your family will be able to pay for funeral costs, estate planning services and medical debts. Other essential expenses like mortgage payments and estate taxes can be more easily managed with the help of a life insurance fund.
Create a legacy
A life insurance policy makes creating an inheritance for your children easy. According to Nationwide, death benefit proceeds can be invested, and begin earning interest immediately. This fund can then be used to pay for college tuition, for example. Benefits can also be turned into a charitable trust, allowing a much larger donation than would be possible with a basic cash transaction. It’s even possible to allow for business succession planning with the help of life insurance benefits. The ability to structure payments makes this method much simpler for everyone involved.
Who needs life insurance?
The right life insurance policy has the potential to benefit almost anyone. Those who are married, either with or without children, could be left in a vulnerable position if either spouse passes away unexpectedly. However, single parents may have even more at stake, according to LifeHappens.org. Business owners could also benefit from a life insurance policy naming a co-owner as a beneficiary. Even single individuals may want to consider a life insurance plan, especially if they have parents or siblings who are counting on their income.
In short, life insurance is perhaps one of the best assets you can own. If you’ve been considering beginning a life insurance policy, there is no better time than now.