First off, excuse me for sounding so morbid but we’re about to talk about an unpopular topic: death. The thought of no longer being around to support your family and loved ones is scary but also something that must be prepared for. Whether you’re 21 years old or 91, the idea of life insurance should at least be rolling around in your head. Now I know what you’re probably thinking, “what do I care? It’s not like I’m around anymore”. While that is true, it’s important to consider what life insurance can do for the financial future of those you’re leaving behind. Today, I’m going to explain why life insurance is a pivotal investment in regards to your family’s long-term planning.
Life Insurance Covers Funeral Costs
For those that didn’t know: funerals are expensive. Just paying for a casket can run you upwards to $10,000 or more. Not to mention burial costs and securing a funeral home. In other words, unless you’ve got some money saved up, paying for a funeral is going to cost an arm and a leg. But, remember, you’re no longer around, which means that your family is going to be the one stuck with the bill. However, this isn’t the case with life insurance. Most life insurance policies help cover the cost of conducting a funeral service. This prevents your loved ones from coming out of their pockets or potentially putting themselves in debt. A life insurance policy covers your back as much as it does theirs.
Life Insurance Provides You with a Plan B
Life is all about planning for the future. Whether that’s buying a new home or preparing for your child’s college education. Unfortunately, death can impede on your financial planning. Without you around, there may be certain bills and expenses that can no longer be paid. This has the potential to affect your family in the long run. There are many families that have been forced to sell their homes or give up their dreams of sending their kid to university because a death placed them in financial hardship. Life Insurance helps to soften the blow by providing your family with a backup plan. Money from your life insurance can be used to cover anything from living expenses to tuition to purchasing of a new home. You may no longer be around but at least your family will be able to live comfortably, and isn’t that something worth investing in?
Life Insurance Comes With Great Tax Benefits
Thinking about living a little something for the family after you’re gone? Well, if we’re talking about an inheritance then they need to be prepared to pay a hefty estate tax. In some cases, these estate taxes can diminish the point of leaving money behind. However, life insurance benefits are an exception. Most insurance policies are income and estate-tax free, meaning that your beneficiaries can receive the full amount of benefits. The plan is to leave your loved ones something that can sustain them long-term. Keep Uncle Sam away from your family’s inheritance. Invest in life insurance.