As humans, we are deeply connected to our loved ones, and want nothing more than to ensure their safety and wellbeing. But how do you do that? Well, it starts with a plan. Setting up a plan for the future is one of the best things you can do for yourself and for your family. With life insurance, you can help put that plan into motion, and make sure your family is taken care of in the event you are no longer able to support them. Understandably, it can be hard to see the value in a product that has no tangible good to show after your initial purchase. However, much like health insurance, the benefits of life insurance come when you need it most. Take a look at four ways life insurance can help you out in the future.
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Gives You a Plan
Because you’re researching life insurance, you likely already have the intention of helping to protect your family and their quality of life long after you’ve passed. Life insurance is a plan you set into motion once and then almost never have to touch again. In other words, after you’ve gone through the steps of taking out a life insurance policy, making sure you pay your premiums every month, you’re all set! You can rest knowing there is a documented plan for your family in the event of your passing.
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Pay Off Debt
Aside from protecting your family after your passing, life insurance can also help provide a way for your family to help settle any debts you may have had after your death. Things like credit card debt, mortgage payments, and medical debt could be paid off with your life insurance benefit. By giving your family a way to manage, pay for, and release themselves from any debt they may not otherwise be able to afford without your financial support, you are working to help protect the quality of life and financial standing of your loved ones.
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Emergency Fund
We’ve all had it happen – just when you think everything is going smoothly, a major financial cost rears its ugly head. Whether it’s an emergency trip to the doctor’s office, a car accident, or something more – not having an emergency fund in place to alleviate the financial burdens of an unexpected cost can be overwhelming. Thankfully, with certain life insurance policies in place, you may be able to use some of the money paid with your premium to build cash value.1 This cash value can be used in the event of an emergency, where you may be able to remove a certain amount of funds to put towards your unexpected cost.1
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Leave a Legacy
How will your family pay for things like college after your death, or other important milestones? Having a life insurance policy in place can help make sure you leave a legacy for your loved ones. Whether it be buying a car, paying for college, or managing mortgage payments – life insurance can allow you to leave a legacy, even if you’re not there to see it.
No matter which way you cut it, life insurance has a number of benefits – all of which can help people like you protect their family and financial wellbeing. Whether you’re looking for a way to help protect your loved ones after death, alleviate debt, pay for college, or supplement your income for retirement, still object to retirement references, there’s something everyone can benefit from with the right insurance policy.
- Investopedia, Emergency Fund, 2020
- Investopedia, Strategies to Use Life Insurance for Retirement, 2019
Categories: Insurance, Life Insurance