Life insurance allows your legacy live on through financial protection for your family. There are many different reasons to get life insurance. There are also many different ways to use life insurance as a tool. No matter your income level or amount of assets, there are smart ways to use life insurance to your advantage and the advantage of your loved ones. It’s easy to add a life insurance policy to your overall health insurance package. It’s recommended you work with a licensed and trusted insurance agent to make sure you get the best life insurance plan for you and your family.
Debt Elimination Life Insurance
One of the most common and basic reasons to get life insurance is to help pay off debt in the event of an untimely death. Often, the largest debt a family has is their house. Using life insurance as a debt elimination tool can help secure your family’s house by paying off the mortgage. Any death in the family can be financially devastating in addition to the mental and emotional hardship. It’s important that your family wouldn’t have to worry about the household bills during their time of mourning.
Income Replacement Life Insurance
If your household all of a sudden lost a source of income, what would you do? Another common use of life insurance is as income replacement tool. No amount of money can make up for a death in the family, however; the family still needs to pay the bills. Having a life insurance policy for income replacement can help maintain the standard of living that your family is used to.
Final Expense Life Insurance
We all know that we will die eventually. A final expense life insurance policy is a great way to pay for the costs related to a proper burial and ceremony. Even if you want a lower cost solution, like cremation, it can still be costly to have the family get together to honor the person they loved. A final expense policy can be used to pay bills, funeral, burial, travel costs, etc.
Inheritance Life Insurance
Both the poor and the rich use life insurance as a tool to leave a tax-free inheritance to their loved ones. If you have a lot of money stashed away for your kids or grandkids when you die, you can use some of it to fund a life insurance policy which your beneficiaries will receive tax-free. Even if you don’t have any money to give away, but you would like to, you can use a life insurance policy as a tool to give the inheritance you want.