Let’s imagine this—you are the breadwinner if the family and you’re sitting in your living room now trying to count the time you’ve made a deposit in your bank account. While still trying to count, you remember that you really haven’t saved up for savings for the past years and now you’re overthinking where to get the emergency funds for your family. Because you’re sad and stressed from work, you can’t stop thinking how you would be able to provide for your family in the next months and years, more so if you’re not there anymore for them because of life’s uncertain events. Then you remember what the insurance agent was telling you while you’re on your way home, “sir, this life insurance is not an additional expense for you but rather a savings and a benefit your family can use when the time comes that you’re not with them anymore.” You started to ask, should I go for a life insurance to give them financial assurance? If yes, what’s in it for me and for them?
If you’re a person who’s in the current situation same as what was illustrated above, there are a couple of benefits you should be aware of when you purchase a life insurance. Understanding how a life insurance works is your edge to successfully achieve a life free from financial worries. And to give you a bright sight of what the advantages of insurance are, here’s our top 6 list.
Life insurance pays for your medical and funeral costs
One of the major benefits of a life insurance is that it pays for your hospital bills and funeral costs in case you reach that point of your life. If you come to think of it, your medical and funeral costs can drain the pockets of your family.
What if there is no money to spend? What if there are no emergency funds or nothing at all? How would your family pay for it when you were the only one capable of providing the money for them? A life insurance ensures that there is a certain amount of money allocated for your medical and funeral bills at times like this. Your family doesn’t have to worry about these expenses because your insurance got you covered.
Life insurance provides financial support
Losing a family member is hard and grieving. What more if it’s the breadwinner who left the family with nothing to start from? Losing a breadwinner will not just hurt the family emotionally, it could also damage them financially since adjustments from the loss would be a significant step for them.
With life insurance, you don’t have to fully deal with this issue. One of the essential benefits if this insurance is that it provides your family a temporary source of income to help them recover from the loss of a loved one and financial resources at the same time.
Life insurance allows funding of various financial goals
A great advantage of a life insurance is that it has a lot of additional options to choose from. For example, you can choose to bundle this product with other options like accumulation of funds in order to save up for your child’s educational fund, buy a home, or even start your dream business. Getting a life insurance can lead you to more financial opportunities, thus, opening a new path to becoming financially free.
Life insurance acts as a retirement nest egg
Most life insurance cones with other great choices—like products with long term maturities. If you opt to purchase a life insurance and bundles it with long term investments, it can serve as your retirement fund when you reach the age or years specified in your insurance contract. Indeed, one of the awesome pros of life insurance is that it helps you decide to settle in the future and lets you achieve the financial position you are aiming for when you retire.
Life insurance covers taxes and debts
A big problem that may arise when a family member dies is how can the family pay for the existing debts and taxes of the deceased. It’s a tough case especially for the family who’s relying on the current assets if the person who died without knowing that these are just going to pay off the liabilities of that person. This is truly inconvenient but can be avoided. You still have time not to let your family be burden by your debts. You can start your life insurance as early as now. Just so you know, an essential feature of life insurance is that it can be used to offset the taxes and debts left by the deceased. This is a great solution for you if you’re uncertain about your capacity to pay your current obligations.
Life insurance can serve as inheritance for your kids
Another benefit of life insurance is the fact that you can consider it as a valuable thing you can leave to your beneficiaries. If you’re paying high premiums, it’s a good news to hear because the more you put in your life insurance, the more amount you will get when the right time comes. Imagine this scenario—you have two children registered as your beneficiaries, but you only have one house that they can inherit. If you have a life insurance, that house can go to one of your kids and the other can get the face amount from your insurance. This can help you equal out an inheritance in the future.