Here are five life insurance benefits you should take advantage of. (2023)

We understand that no one wants to think about death, neither for themselves nor for the people they love. Furthermore, many people associatelife insurance for childrenwith death. And while it's there just in case, you can do a lot more without breaking the bank. Consider purchasing life insurance for one of the following good reasons:

1. It is an essential part of a sound financial strategy.

Many families face devastating consequences due to inadequate coverage. According to the results of our 2019 Insurance Barometer, four in ten households without life insurance would have immediate difficulty earning a living in the event of the death of their primary provider. Life insurance gives you the peace of mind that your loved ones will be financially protected in the event of your untimely death and helps you plan for the long-term health and happiness of your loved ones.

If your death leaves someone else in financial difficulty, it is imperative that you have life insurance, as well as a savings and checking account. The money you receive from the policy's death benefits can help your family meet a number of important financial needs, such as: B. Funding additional education, funeral expenses, and living expenses.

2. The price is not as high as you think.

Due to the widespread perception among consumers that life insurance is either too difficult to understand or prohibitively expensive to purchase, only 57% of adults in the United States currently have life insurance. Contrary to popular belief, life insurance is not only affordable but also much easier to obtain. For example, a 30-year-old in good health can buy a 20-year term life insurance policy with a face value of $250,000 for about $13 a month. It's a lot easier to budget and a lot less daunting when you break it down this way.

3. It has the potential to appreciate over time.

In addition to the death benefit it pays to your beneficiaries, permanent life insurance also has a cash value, or redemption value, which means it can accumulate cash values ​​throughout your life. Cash amounts may be tax deductible and may be used for any future purpose, e.g. For example, a down payment on a house, college tuition, or even retirement income. This is similar to how most retirement and tuition savings plans work.

This can be an advantageous option as loan rates tend to be low and there are no additional requirements such as B. A credit check must be completed. However, you should remember that you are ultimately responsible for repaying a loan on the agreed terms to ensure that your beneficiary receives the death benefit you intended.

4. The term "life insurance" can refer to more than just the policy itself.

Coverage can be increased by adding drivers to a life insurance contract or by purchasing a specific type of policy. For example, you can buy life insurance, also known as hybrid insurance, that provides a long-term care benefit to pay for costs related to long-term care. You have the option to take advantage of this benefit in the future if you need it; Otherwise, your beneficiary will receive it when you die. You can tailor your coverage to your specific needs with the help of a variety of different drivers available to you.

5. It can help you get the most out of your retirement savings.

Your permanent life insurance policy can potentially take on a new role and be beneficial to your retirement if the financial obligations you had when you originally purchased the policy are met. Your policy, if structured correctly, can provide you with additional retirement income through the use of loans and policy withdrawals, as well as opportunities for long-term care benefits.

You can also maximize your retirement by using life insurance to supplement your surviving spouse's income, or you can establish a life insurance fund so you can pass assets outside of your estate to your heirs. Both options can help you make the most of your retirement savings (as well as avoid income and estate taxes).

So what are the next steps? You can use this online life insurance needs calculator to do a quick calculation to determine the potential amount of life insurance coverage you may need. The next step is to plan to discuss your financial needs and limitations with an insurance agent. Remember that they will help you for free and without obligation.

Preferential prices:

A premium life insurance rate is a cheaper rate than the standard rate. Candidates less likely to die will have preference at this time. When deciding whether or not to offer preferential rates, life insurers consider a person's medical history, whether or not they smoke, their gender, and their lifestyle.

The payment required by an insurer to keep your policy active is called a "premium." Your premium may be due once a year, four times a year, once a month, or on a different schedule entirely, depending on your policy.

A passenger is an optional add-on to your primary insurance that offers greater coverage. Offers additional protection tailored to your specific needs. Long-term assistance drivers and accelerated death drivers are two examples of common types of insurance drivers. (You can learn more about long-term care insurance and accelerated death benefits by reviewing the section above.)

The most common and cheapest type of life insurance is called term life insurance, which covers a predetermined period of time. Provides protection for a fixed period of time (the term). Typical term length is between 10 and 30 years. If you die during the policy term, your beneficiaries will receive a payment known as a death benefit. Learn more about life insurance.

Subscription is the process thatlife insurance benefitsCompanies determine two things: first, if they want to offer you a policy, and second, at what price they want to offer it to you. Underwriting is done by a trained professional known as an underwriter. When it comes to life insurance, the insurer makes decisions after considering a variety of factors including age, health, lifestyle, and more.

long term care insurance

This type of insurance is valid if you cannot take care of yourself for a long time, and it costs more than conventional health insurance. It can be used to cover the cost of home health care, adult day care, or nursing homes. Long-term care insurance offers a wide range of rate types. Learn about long-term care insurance.

Permanent Life Insurance

Like life insurance, permanent life insurance provides the policyholder with a death benefit. Unlike life insurance, however, perpetual life insurance provides protection for the life of the policyholder as long as the premiums are maintained. Plus, build cash value over time with tax advantages. You can use that money to buy a home, supplement your retirement income, pay an unexpected bill, or anything else. If you want to increase your wealth and provide financial security for your loved ones, this is a great option for you. Learn more about permanent life insurance.

If you found an error in the text, send the author a message by highlighting the error and pressing Ctrl-Enter.

Top Articles
Latest Posts
Article information

Author: Sen. Emmett Berge

Last Updated: 12/23/2022

Views: 5642

Rating: 5 / 5 (80 voted)

Reviews: 87% of readers found this page helpful

Author information

Name: Sen. Emmett Berge

Birthday: 1993-06-17

Address: 787 Elvis Divide, Port Brice, OH 24507-6802

Phone: +9779049645255

Job: Senior Healthcare Specialist

Hobby: Cycling, Model building, Kitesurfing, Origami, Lapidary, Dance, Basketball

Introduction: My name is Sen. Emmett Berge, I am a funny, vast, charming, courageous, enthusiastic, jolly, famous person who loves writing and wants to share my knowledge and understanding with you.