When is comes to your finances you begin to realize the fundamental importance that life insurance has and can have on the ones around you. It may seem like a daunting commitment but it will bring comfort to you in the long run. Here are a few of reasons why purchasing a life insurance policy is important:
It helps protect your family. Anything can happen at any moment in time, and as unsettling as that can be to consider, it is important to think about the people you could be leaving behind if the worst were to suddenly happen. Will your loved ones be taken care of? By taking out a life insurance policy, you leave behind money to help your family pay bills, send the kids or grandkids to college and provide them with overall financial support. Emotional stress is enough to take on without also being left in debt.
It helps pay for your funeral. Funerals costs can be overwhelming for many. According to the National Funeral Directors Association, the average funeral costs between $7,000 and $10,000, which does not even cover the cost of buying flowers or arranging an obituary. Life insurance policies can cover these expenses and leave your family in a better position.
It pays for estate taxes. If you planned on giving property to a family member, there are still certain taxes that must be paid on the property. Life insurance policies help cover estate costs and miscellaneous fees that may occur in these situations.
It can supplement your retirement. A life insurance policy can serve as a safety net to make sure that your retirement fund will last for as long as is needed. Life insurance will help you maintain a comfortable lifestyle throughout retirement. It can even help you build cash value that can accessed through withdrawals to supplement the income that comes from Social Security. Life insurance can also help your spouse maintain a comfortable lifestyle after you pass.