
When we think about life insurance, we may relate it with death. In reality, life insurance is not always about planning after your death. Some of the great reasons to choose life insurance include:
Comprehensive Financial Plan
Inadequate coverage may have severe consequences for a majority of families. As per the 2019 Insurance Barometer, every four in ten households who do not have life insurance may have trouble paying for their living expenses if their breadwinner passed away. Hence, life insurance plays a significant role in financially protecting your family. The policy death benefit acts as a saving that will pay for your family’s financial needs. It ensures their peace of mind and welfare.
It’s an Affordable Plan
A majority of people believe that life insurance is complicated and expensive. It creates an ownership blockade with only 57% of the people purchasing life insurance in recent times. In reality, life insurance is an affordable, accessible and convenient way of saving. For instance, a 30 years old individual can purchase a $250,000 insurance policy for just a $13 monthly premium payment. Paying this minor premium will give you incredible lifetime benefits.
Cash Value is a Great Advantage
Permanent life insurance accumulates a cash value over time. It implies that you can also benefit from the accumulated cash value while you have a guaranteed death benefit. Like retirement and education saving plans, cash values can gather on a tax-deferred basis, which you can use for multiple purposes. It is an excellent option as the interest rate of borrowed amount from the cash value is comparatively low and is not influenced by credit checks or other limitations.
Valuable Investment
Life insurance riders can help enhance your coverage. Like, when you purchase a life insurance policy, you can opt for a hybrid policy that incorporates long-term benefits that you can use to pay for long-term services. If you feel this might be useful for you in the future, you can benefit from it. Otherwise, the death benefit is always a valuable gift for your successors. There are many riders available in the market that can help you personalize your policy and improve coverage.
Peace After Retirement
If the financial responsibility of the permanent life insurance plan you purchased initially has ceased, your policy can be renewed and benefit your retirement. If planned appropriately, this policy can provide additional retirement income (through policy loans and extractions) or can be adapted to provide long-term care benefits.
Apart from this, life insurance can also take full advantage of a pension by complementing the surviving spouse’s income or transformed it into a life insurance trust which you can pass on to your successors (living outside your estate)
Conclusion
We understand that life is complicated and unexpected. While our current expenditures are essential, we should not forgo the future for this. If you plan to save through a saving account, you may not be particular about the contribution. Hence, a life insurance policy is the most convenient and valued way to save for the future.
The flexibility of the life insurance policy makes it a more valuable saving option. You can either leave the death benefit for your loved ones or extract money from the tax-deferred cash value to pay for your current expenses. It is a perfect loan replacement due to the very low interest rates offered.
Who would not want to see their family financially stable and sound after their death? So, contact your trusted life insurance agent today.