For Your Beneficiary
Life Insurance -
"Top reasons to have a policy!”
"Protecting your Beneficiary"
Life insurance is a smart choice and a good way to protect those you love. So what are the top reasons why people buy life insurance? That’s a great question… with quite a few answers. Here are some of the top reasons why choosing life insurance is a smart choice. Check out some top tips on how to buy life insurance and what you should look for!
Advantages of insuring yourself for your Beneficiary
Life insurance-Reasons to buy
Insurance-Life Benefits for your family
- Final expenses
- Replacement of income
- Mortgage Protection
- Legacy creation
Burial Life Insurance - Pay for Final Expenses
The costs to pay for a funeral can be large (roughly between $6,000 - $10,000). And unless you have the money saved up, your loved ones will have to come out of pocket for these expenses. If your family is unprepared, this can be an extremely stressful time for them. For your family and beneficiary, life insurance will put them at ease during an especially difficult time. They won’t have to worry about coming up with the cash to pay for the funeral expenses and everything else associated with it. A few of the costs to consider are funeral, flowers, plot, casket and also hospital and doctor bills. Something you should also think about is the cost of lost wages from missing work. For you or your beneficiary life insurance will really help out during a rough time. Think about it… You really may not want to go back to work after only a few days. You’ll need time to grieve and having a policy will make the transition a little easier.
Advantages for your Beneficiary -Life insurance for Replacement of income
If you are the primary wage earner in your family and you die, this is lost income to your family. By choosing life insurance now, you will be protecting them in the future. Life must go on and debts and other obligations such as bills, education expenses, rent/mortgage, medical bills, and all other costs still need to be paid. A life insurance policy will help replace your lost income. This same situation goes for the loss of a child. You might also be interested in reading about the big debate on life insurance for kids.
Choosing life insurance for Mortgage Protection
Mortgage term life insurance
Let’s say that you and a spouse own a home and are still paying on the loan. If you die, then your spouse is left paying the mortgage by his/herself on one salary when previously there were two. If unable to make the loan payments your spouse might fall behind and be forced to sell the house. Or even worse, they might be faced with a foreclosure. In the event of death, a mortgage protection life insurance policy will be paid out and can be applied to the mortgage balance. In most cases, if you need to purchase a policy like this specifically for mortgage protection you might need a term policy. As always, you should talk to a professional about your needs. They can help you get a term life insurance premium quote to compare.So why buy term? A mortgage or loan is set for a specific number of years until paid in full (maturity date). Please keep in mind, though, that everyone’s needs are different! For your beneficiary, life insurance will be helpful, especially when there is still a large mortgage to pay on. They won’t have to worry about losing their home.
Purchase Life Insurance for Legacy creation
Purchasing life insurance creates an immediate estate for loved ones, in the event of death. This would seem to be especially helpful for young families who have not had time to accumulate any assets. Wouldn’t you love to leave something behind for your loved ones to remember you by? My husband (who is a life insurance agent) has seen quite a few grandparents who will purchase life insurance policies and name their grandchildren as their beneficiaries.
Taxes on Life Insurance Policy
Remember that in general, the death benefit amount is tax free if received in one lump sum. That is if you receive the payout all at once. There are some exceptions such as if you choose not to receive the death benefit in a lump sum and receive monthly payments instead. The sum will start to grow with interest and taxes will be owed on the amount exceeding the death benefit. You should always speak to a CPA or Tax advisor for further help on your tax planning needs.
Take the time to really consider the benefits of life insurance and you will soon see that the decision to buy is one of the best you will make.
For your beneficiary life insurance (Top reasons to buy)
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