There are several good reasons why you should buy a life insurance policy. Other than expanding your assets and lowering your tax liabilities, this policy shows your loved ones you care about their future, even when you are not around. Here’s a look at six ways in which life insurance can benefit you and your family.
- Provide Money to Help the People You Love –
First and foremost, a life insurance policy provides benefits to the people you love the most. Your plan will not only pay for funeral expenses and any money you owe, but it will also help pay your survivors for living costs and education.
- Leave a Legacy –
If you want to be remembered by your survivors as one who paved the way for their future, there’s no better way of showing it than with a life insurance policy. Moreover, your family won’t have to pay taxes on the benefits they receive from your plan.
- Create Another Source of Income, Especially for Retirement –
Getting a long-term life insurance policy, such as whole life or universal life insurance plan, opens the door to building assets over time and setting up consistent retirement income. Your account grows the more you pay into it.
- Have Access to Money If You Get Sick –
Another major advantage of permanent life coverage is that it pays you when you’re too sick to work. Thus, it can turn into regular income if you develop a chronic illness and must retire early.
- Pay Less in Taxes –
The money from your policy can be used to pay off the taxes on your estate. While you’re alive you’ll get a tax break for buying a life insurance policy. Another key advantage is you can borrow tax-free loans against your policy.
- Protect Your Business –
If you happen to own a business with partners, a permanent insurance policy will pay benefits when a partner or employee dies. It can also pay for costs associated with selling your business to a new owner.
Be aware of the different types of life insurance and the differences between whole life, term life, and other coverage offerings. Whole life is a long-term plan that grows in value over the years. Term life lasts for a shorter period without building value but is a more affordable plan.
Buying a life insurance policy at any age is better than not having one, especially if you’re raising a family. Invest in your family’s future with a plan that’s right for each member. Contact us at Medicare Advisors to learn more about enrolling in a life insurance policy.