The investment in life insurance can provide one of the strongest cornerstones for your family's financial well-being. If you’re wondering if you need to invest in it or what the value would be to your family, consider these five ways life insurance can impact the lives of individuals in the long run.
#1: Pay for Final Expenses
Perhaps one of the hardest parts of losing someone is realizing there is a large amount of money needed to pay for final expenses. Life insurance can help over burial and funeral costs, administration of probate costs, pay final medical expenses and meet other debt requirements following death.
#2: Replace Income for Your Dependents
If your family relies on your income, life insurance is very important. Without it, your family may not be able to meet financial needs on a regular basis. If the survivors, including your dependents, would be financially stricken without your income, life insurance can help.
#3: Allow Your Heirs to Inherit From You
Life insurance can be an important part of any estate plan. If you wish to leave behind money to your loved ones, a special charity or another organization, you can do this through your policy. You determine the beneficiaries of the policy, giving you a great deal of freedom.
#4: Create a Savings Fund for Loved Ones
Life insurance plans can help you give your loved ones a backup funding source for their financial needs for years to come. Perhaps your loved ones do not need your income replaced, but they can benefit from having a larger savings for later.
#5: Minimize Estate Taxes
Yet another key benefit is that life insurance can help to pay off and cover estate taxes, often called death taxes. However, life insurance proceeds are not taxable and these funds do not go through probate themselves, giving your loved ones the financial support they need without allowing creditors or tax departments to take the funds from them.
When it comes to structuring your financial future, focus first on your family's would-be needs if you were not there to support them. The key here is to realize the true value this type of investment can make and its importance in numerous situations.
Get the right coverage today. Call Allen Harmon Insurance at (269) 441-5156 for more information on Battle Creek life insurance.