Do you already have life insurance?
Many people choose not to get life insurance until they’re older. If you have people who are dependent on you, however, it’s important that you consider getting a life insurance policy.
There are plenty of benefits of life insurance and it’s more affordable than you think. Keep reading to learn all about some of the top life insurance advantages.
1. It Can Supplement Your Retirement Savings
One of the top benefits of getting a life insurance policy, even if you think that you’re “too young” for one, is that it can supplement your retirement savings under certain conditions.
Several types of life insurance policies accumulate cash value over time. You can use that cash value to help you cover larger expenses or you can use it to supplement your retirement income (though it will not replace a retirement account).
Standard life insurance policies do not have this benefit, so make sure that you talk to a broker about your options.
2. It Covers Your Loved Ones’ Living Expenses
When you have life insurance, you can rest easy knowing that your dependents will have some of their living expenses covered in the event of your death (even if it’s premature).
As long as you get a life insurance policy with a high enough payout, you may be able to cover college expenses, your mortgage, and more. This will make a huge difference.
3. It Can Help Cover Terminal Illnesses
Have you heard about insurance riders? They’re extra additions that you can put onto your life insurance policy that can add extra life insurance benefits.
One of them, like accelerated benefits or chronic illness riders, will allow you to access some of your life insurance money while you’re still alive. This can help you cover care and health expenses.
Learn more about life insurance riders here: https://paradigmlife.net/blog/paid-additions-pua-life-insurance/
4. It Can Cover Final Expenses
Paying for funerals is often out of reach for many people. Funeral expenses can be thousands of dollars, and there aren’t many affordable options aside from donating the body to science. Even then, the funeral service itself will cost money.
Some life insurance policies have final expense options. Your loved ones can use that money instead of having to pay out of their own savings.
5. It’s Tax-Free
As long as you’re still covered by your life insurance policy when you pass away, your beneficiaries will receive the money in a lump sum. This money isn’t taxable because the IRS doesn’t consider it income.
This means that they’ll have access to the entire lump sum without having to pay money that they can’t afford to lose later on.
Don’t Underestimate the Benefits of Life Insurance
The benefits of life insurance don’t just help your beneficiaries; they can also help you. Getting a life insurance policy is one of the best things that you can do for yourself and your loved ones. Talk to a life insurance agent today t get started.
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