When it comes to purchasing life insurance, you can rest assured that you’re making a wise decision. It’s imperative that you speak with a qualified insurance specialist serving your area to make sure all of your insurance needs are being met. Here’s a quick overview of the most six most common benefits you’ll likely gain when purchasing a life insurance policy.
1) Estate Planning
When you buy life insurance, your agent will talk with you about the ways in which you want the benefits to be dispersed. In doing this, you are essentially performing estate planning. It’s important to tell the agent about any other monies you might have to ensure your life insurance funds are dispersed in the best way possible.
2) Maintain a Standard of Living
Your beneficiaries can use the funds they inherit through your life insurance policy to make sure they are able to uphold their normal standard of living. An insurance agent can help you assess the amount of the policy you need to invest in.
3) Pay Off a Mortgage
After you become deceased, the beneficiaries of your funds can use them to pay off one or more existing mortgages. For example, if you have a life insurance policy in the amount of $600,000 and your spouse and two children each take $200,000 when you pass away, then they can use the funds to pay off their mortgages. This is great because it lets you have peace of mind in knowing your family will have several homes even after you are gone.
4) Funeral Expenses
Your funeral expenses can be quite expensive, and this is exactly why you should make sure you have funeral coverage. If you don’t, then your loved ones can always use life insurance funds to pay for the expenses.
5) Pay College Tuition
Do you have children who have yet to go through college? If so, you should definitely invest in a life insurance policy to make sure they have the funds to earn a degree even if you were to pass away. In doing this for your children, they won’t be burdened with losing you and having to take out school loans. Just make sure you purchase a life insurance policy in an amount that will sufficiently cover their schooling costs.
6) Supplemental Retirement Plan
Lastly, your life insurance plan can act as a supplemental retirement plan for you and your beneficiaries. You’ll need to invest in one with a cash value to take advantage of the funds yourself. A qualified agent can explain the ins-and-outs of supplementing your retirement plan with life insurance funds.
Contact us today to learn more about the benefits of life insurance.
