We’re gonna be frank with you and tell you that we know that shopping for and buying insurance is a big pain in the butt. We know. We know.
But sometimes life makes you do things you just gotta do, like—speaking of life— buying life insurance.
Why life insurance?
Well, we’ll go right ahead and tell you.
Think of this important financial decision as an emotionally driven one. It’s about keeping the promise to protect your loved ones for as long as they live in the devastating event that you die prematurely. It would be terrible to have an added layer of financial stress on top of losing you— their parent, partner, caretaker, or whoever you are to your dependents.
Life insurance is all about the future— planning for the unpredictable and sometimes painful future. The future that holds catastrophe, joy, fear, love, and insecurity all in the same hand.
We know and you know that you aren’t thinking about your future when buying life insurance.
3 Benefits of Life Insurance
Life insurance payouts are not taxed.
If you have a life insurance policy and die while it is active, your beneficiaries will get a lump sum death payment. Life insurance payouts are not considered income for tax purposes, and your beneficiaries are not required to record the money on their tax returns.
Your dependents will not have to be concerned about living expenses.
Many experts advise carrying life insurance that is seven to ten times your annual salary. People who rely on your income should not have to worry about their living expenditures or other big charges if you have a policy (or policies) of that magnitude. For example, your insurance policy may cover the expense of your children’s college tuition, eliminating the need for them to obtain student loans.
Final expenses can be covered by life insurance.
As of 2019, the national median cost of a funeral that includes a viewing and burial was $7,640. Due to the fact that many Americans do not have enough funds to meet even a $400 emergency bill, having to pay for a funeral can be a significant financial burden. If you have a life insurance policy, your beneficiaries can utilize the proceeds to cover your funeral expenses without having to dive into their own resources or use credit.
Some insurance companies provide last expense coverage. These policies provide limited coverage and have minimal monthly rates.
You’re thinking about your family having enough to pay the bills, stock the refrigerator, and live comfortably. You want to make the transition from grieving to moving forward easier.
You want your kids to go to college.
You want your family to live.