Benefits of Life Insurance
While it is never fun to think about and plan for the end of our life, it is a reality that we cannot escape. Life insurance is something that can make a huge difference to you and your family should something happen to you. For a small investment, you can ensure that your family and loved ones will have one less thing to worry about. There are some other benefits to life insurance that you should be aware of as well.
Final Expenses and Debt
If you die, would your family be able to survive financially? With most households being dependent on two incomes, this is not likely. A big reason to purchase life insurance is to pay for your final expenses, like a funeral or wake, and your final resting place. The average funeral these days can cost well over $20,000 and if something happens to you, you won’t want your family to have to come up with the money to pay for that while they are trying to grieve. Also, if you purchase a larger face amount, your family can use the benefits to pay off debt like your mortgage, car payment, or even student loans. Best of all, the benefit is tax free.
Depending on the type of life insurance policy you purchase, it could accrue cash value. That means you can take cash out, or borrow against the policy if you need to. In this way, it can be seen as an investment. Be sure to discuss the ins and outs of this benefit to fully understand how it works, especially with taxes and any loan repayment.
There are many riders that you can add to most life insurance policies that could prove to be very beneficial to policyholders. A child rider can be added to have a small face amount for your children. A long term care rider will allow you to use your death benefit to pay for long term care if that is what you need it for. An accidental death rider will pay an additional death benefit if you die in an accident.
As you can see, life insurance offers many benefits in addition to paying for funeral expenses. If you or your family members do not have life insurance currently, call Rumbaugh Insurance today to discuss your options.