- Posted by Canopy
- On August 5, 2015
- 0 Comments
- benefits of life insurance
When you first reached adulthood, you felt excited about all the freedom and privileges you suddenly acquired. However, you also realized that you had new responsibilities too. All of a sudden, you had to deal with taxes. Then, you had to shop for insurance for the first time. So you found the cheapest, car, home, and health insurance you could find.
However, now that you have a spouse and a family, you need to think beyond basic coverage. Health insurance protects you from excessive medical expenses, but it doesn’t cover everything that could affect your health or your family.
Whether you function as the sole breadwinner or supplement your household income, your family depends on you, so you have to leave them a financial safety net in case anything happens to you. That safety net comes in the form of life insurance.
Below, we’ll tell you more about what life insurance covers and why you should get it.
What Does Life Insurance Cover?
In the most basic sense, life insurance protects the people who rely on your income. If you die, life insurance covers your family members’ financial needs until they find a way to live without assistance. Additionally, if your family can’t pay for a funeral or any legal costs after your death, life insurance will make up the difference.
Even if you don’t have dependents, life insurance represents a smart investment because it gives your siblings, parents, and extended family a way to cover end-of-life expenses.
However, before you purchase this type of coverage, make sure you know which benefits and coverage you need. Life insurance comes in four forms, each with its own different features:
- Term life insurance lasts for 10 to 30 years, depending on the plan you select. This plan doesn’t have any cash value, so you can’t cash out of your plan in the event of a death. You also have to deal with a fixed premium-at least initially. However, your premium will cost less with term life than with other types of life insurance.
- Whole life insurance, as you might expect, lasts for the duration of your life. It has a cash value that you can use during your lifetime. However, it also comes with a fixed premium.
- Universal life insurance comes with many of the same benefits as whole life insurance, but it has flexible premiums.
- Final expense life insurance mostly just covers funeral expenses. Insurance providers usually offer this kind of coverage to persons older than 50.
Ask your provider for more information about these four options. When you purchase any type of life insurance, your provider will go over your finances and suggest the right plan for your needs.
How Do You Benefit from Life Insurance?
In addition to the financial benefits listed above, life insurance also gives you other advantages:
- A smoother transition: Your death may leave your family members monetarily and emotionally insecure. But when they have your insurance to cover their finances, they can focus on their emotional needs and heal more quickly.
- Freedom to fulfil future dreams: If you and your spouse have a college fund for your children, your family won’t have to dip into that fund to survive after you pass on.
- No inheritance taxes: Perhaps you’ll live a long and happy life, and you die of old age. Your life insurance can still help your family cover inheritance taxes. This way, your property and belongings pass to your heirs uninhibited.
The younger you are when you get life insurance, the lower premiums you’ll pay, depending on your provider. Even if you feel hale and hearty now, add this extra layer of financial protection. Your loved ones will thank you for the investment later.
To learn more about life insurance, health insurance, and coverage, read through the rest of our blog.