We’re all familiar with the phrase; when life gives you lemons, you make lemonade, but the truth is, life can sometimes be downright devastating. The unfortunate reality of sudden illness, incapacitation, or even death is something that shouldn’t be overlooked. Such situations can put our loved ones in a state of bad financial predicaments. But worry not, there is a way to safeguard the lives of your dependents and that is by buying life insurance.
Regardless of your financial status, all walks of life can benefit from life insurance. So why do we tend to overlook it?
- Its value isn’t apparent right away
- No law requires us to buy it
- Some find it offensive to consider their lives in monetary value
- We don’t want to think about death
Even though it may seem like a taboo topic, it most certainly isn’t something you should avoid. Consider the following reasons.
Peace of Mind
Just knowing that in the unfortunate event of your untimely passing, your loved ones and family will have financial safety offers peace of mind. Life insurance takes the place of your income in case of death, which is extremely important, especially if your family solely depends on your income to live.
Final Expenses Covered
Life insurance pays a lump sum monetary benefit which takes care of the costs left behind after your death. This covers costs associated with cremation, burial expenses, etc. People commonly purchase life insurance after they’ve reached their retirement age and have little to nothing in their savings. Without life insurance, final burial expenses are left to siblings and as you very well could imagine, this oftentimes leads to a series of issues. The siblings who are financially able to pay, have to pay, and this can cause strain on their relationship with one another. By purchasing life insurance, this issue is completed eliminated, thus avoiding another potential family crisis during an already trying time.
You get Tax Advantages!
- All the payouts of life insurance don’t have any tax, which means you receive the full amount.
- There aren’t any long waiting periods for payments, unlike other insurance policies.
Other types of insurance policies will sometimes require that you wait for analysis, evaluation, and more. This can be a pain but life insurance provides quick payments, which means no annoying waiting periods. This helps cover expenses instantly in the case of your passing, diminishing the burden on relatives and family members.
Cash Benefit
There are other types of life insurance policies that also provide some sort of cash value. This means that out of the premiums you pay, there is a chunk set aside that accumulates interest, which is then invested back into the market. You also have the option to borrow money or wait for a lump sum payout at the end. If you’d like to bundle your coverage with other types of life insurance, you could benefit from even more perks and affordable rates. There are a bunch of policies available which makes it very flexible for any lifestyle.
Joint Policy Discounts
If you’re in the market for a joint policy with your spouse, a lot of life insurance companies will offer you a multi-policy discount. This is important if you want to save a few bucks on life insurance premiums.
How Do I Get Life Insurance?
There are a few ways you can get a policy that suits your needs. One of these ways is by searching for a policy that covers somewhere between 5-10 times your annual income. Not only will this policy handle expenses but it will also take care of other outstanding debts.
Work With a Broker
A broker’s job is to help you shop around and find the best rates and coverage available considering your low budget. You want to remember this: work with brokers but avoid working with captive agents. Captive agents don’t necessarily have your best interest in mind and instead of finding you the most affordable policy, they can lead you to work with single companies that oftentimes have lackluster underwriting in the case of health issues. Brokers will help you seal the best deal!
Compare Coverages: With and Without Medical Examination
Your goal should be finding the best coverage at an affordable price. If you are sure of your health, then there’s nothing to worry about when taking your medical exam. Remember that several factors such as job, health status, and even lifestyle issues are taken into consideration when providers are determining your premiums. Regardless if it’s a final plan or term life insurance, the coverage should not break your bank. But first, it’s wise to do a side-by-side comparison of non-medical and medical life policies.
In most cases, term life insurance is perfect if you want to replace your income, pay off your debts and successfully leave your dependents in a financially secure situation. Ensure that the type of policy you select doesn’t have fluctuating premiums and can provide you with a comprehensive death benefit that is paid directly to your family in the unfortunate situation of your death. Term life insurance can be rather affordable when you compare it to permanent life insurance.
Concluding Thoughts
Life is unpredictable, we all know that, but two things are always going to reign true: taxes and death. An untimely death can force your family into a difficult situation especially if you don’t have adequate savings for such an unfortunate emergency. If you really want to prevent your family from having to worry about this, taking out an affordable life insurance policy is the best way to go. It takes care of the final expenses, pays off debts, and replaces your income not to mention other benefits.