Life insurance provides you the assurance of leaving behind a legacy. This is because the right coverage can provide a valuable combination of benefits so you and your loved ones know what you’re getting.
Everyone has different reasons for purchasing insurance. However, purchasing insurance is fundamentally about providing financial security for yourself and those you care about.
Here are a few of the most common reasons people consider purchasing life insurance.
Assurance of Protection
If you have a family, people who rely on you, or a business, the life insurance benefit of a whole life policy serves as a financial safety net. Your beneficiaries will receive a lump-sum payment guaranteed to be paid in full in the event of your death. It’s critical protection that you can rely on to be present for your loved ones when they need it the most.
Income Substitution
Consider what would happen to your family if your source of income suddenly vanished. By purchasing whole life insurance, you can ensure your loved ones have the necessary funds to:
– Pay the mortgage
– Provide childcare, medical care, or other services
– Cover tuition and other college expenses
– Get rid of household debt
– Maintain a family business
Tax-Free Benefit
The benefit of a life insurance policy is that it is generally federal income tax-free. As a result, your beneficiaries will be able to enjoy every dollar you leave behind.
Guaranteed Cash Value Growth
As you pay premiums, your whole life policy accumulates cash value guaranteed to grow. This can help you achieve a variety of financial objectives, including:
– Increase your retirement income
– Contribute to the education of a child or grandchild
– Repay a mortgage
– Preserve existing assets
– Create an emergency fund
Optional Riders
There are several approaches to tailoring a whole life policy to your needs. Riders can be used to purchase additional coverage without further underwriting, to pay your premiums if you become disabled, or to purchase coverage for your children for an additional cost. Your agent can assist you in determining whether any of these riders are appropriate for you.
