Any Benefits of Life Insurance, Eh?
Before you give the issue a complete shrug off, having several minutes to think over the benefits of life insurance may not be a very bad idea. After all, the insurance is on life itself, right?
There could be a series of list-able reasons in favor of purchasing life insurance. While many of the sub-headings on its pros are ignore-able, some may really prove your next-door neighbor to be a more prudent financial planner than you in having a life insurance policy in place.
Here is a curated list of 18 benefits of life insurance that demand a second thought before you laugh at the neighbor for wasting money on life insurance for no good reason.
Wraps Your Folks up in Cotton Wool
When you take out life insurance on yourself, it is your folks who you do it for. In compliance with the federal and state law, the insurer remains under obligation to provide monetary compensation to your folks when you die off. They pay the figure of money documented in the policy papers and thus keep your family in the safe financial zone.
Thus, as the phrase goes, life insurance wraps up your folks in cotton wool.
Rides Shotgun for Your Possessions
While creating fences around the people you love most is not an insignificant reason to ignore, protecting whatever assets you leave behind also surely matters. It may be the home still on mortgage or the auto you are used to driving to your workplace. It may even be the business you own. When you leave behind a considerable coverage through your insurance plan, your family members can use it to protect whatever assets they inherit.
The Oldies Still Count
As to how you will live your days past your retirement can be a big question for you. Though the list of expenses will presumably go slimmer from now, there may be issues life insurance could be essential for. If you have an adopted child, a second wife or children from the second wife, they might need a protection system for good reasons. The same oldies of reasons hang up on the wall in your front once again: income replacement and education of the children and the like.
Besides, if you want to maintain the standard of life when your financial capacities are tied and tightened, life insurance benefits from your whole plan can be worth a thought. Benefits received at maturity will be of great use in those days.
A Safe Route to Invest
If you are not into the business world or backed up with the inside news and workings of investment, making extra money from through investment on your own may be a fatal idea. Your investment could end up eating away all your money instead of adding to it. But when you invest your money into permanent life insurance, your investment does not bear the risk. You are safeguarded against loss by a minimum guaranteed interest and guaranteed benefit amount.
Compulsive Savings to Avoid Bread Crumbs
This especially happens when you are on a whole life insurance policy. After you have spent a bucket of your bucks on your insurance, you have little choice but to continue the policy. The reason is if you want to get out of it, you will have much of your money taken away. In fact, all you will be left with will amount to the bread crumbs that the mice got from the shrewd monkey in Aesop’s tale. Unless you are otherwise ready, the only and very positive option finally leads you to continue the insurance. And, this choice of compulsive savings bears real sweet fruits in the end.
Again, when you have term insurance that promises money back guarantee, namely, Return of Premium life insurance (ROP), you will be in the same situation. ROP plans typically do not return your money until 15 years.
A Funnel for Funds in Need
You know about the olden saying—a friend in need. The benefits of life insurance include the friendly need it offers when you need it. If you have a cash value life insurance, it accumulates profits that you can take out loans from. In times of emergencies requiring you to get immediate cash, you can access it to use for personal use.
The Molehill Turns into Mountain
One of the big benefits of life insurance is it provides you scopes to leave a legacy for the people you love. When you are unable to do so by way of estate planning or will, keeping off small amounts of money through insurance premiums can pave the way for you to fulfill your dream. The small drops of water make a pond of money, if not sea.
Your Pocket Remains Un-shoved
Will Rogers compared your pockets with ‘creek’ that the government ‘shoves’ once a year to take off taxes. And your income is the money that does not get wet. Your folks are lucky that the creeks of their pockets are not shoved to take the taxes off. The benefits of life insurance include this exclusion of tax on the coverage you receive.
You Have Your Nap and Snore
You cannot be sure when the world will end for you. This uncertainty about life insurance cannot but be a central concern for your family’s future. When you have life insurance, you know whatever happens your family members will remain financially secure. This gives you the very mental peace you need to live along. This certainly brings the very peace you need for good sleep.
You Can Be the Samaritan You Want to Be
If you have a charitable trust you find yourself attached to heart and soul and want to contribute to it in a big way, you can do so with your insurance. You can make the trust the beneficiary to your life insurance policy. Thus, life insurance serves to fulfill your dream to serve humanity.
Useful for the Big Good Bye
Whether you own a final expense life insurance or not, life insurance facilitates funds for your people to pay for the expenditures involved in the funeral procedures. Paying as much as $20k for final expenses is not easy for many. When you add the last days expenses (for worsening health) to it, the figure can be heavier for them to bear. But when you have life insurance on yourself, the death benefit eases the burden for them. Also, the benefits of life insurance your folks receive can be a funnel to pay for whatever credits or bills you may have left.
You Can Bend It Like Beckham
One of the huge benefits of life insurance is the flexibility it provides. There are multiple products from hundreds of insurers that you can choose yours from. Literally, there are products to meet everyone’s specific needs. For example, you can buy term insurance for temporary needs. You can buy protection for the entirety of your life. Similarly, you can take out a mortgage insurance to protect your home. In the same way, there is the endowment policies to get benefits after a period. There are many more products allowing you to plan your financial safety the way you find suitable.
You can really bend it like Beckham.
Riders Go an Extra Mile
Life insurance companies sell extra benefits with little raises in the cost of your mother policy. These extension-like benefits are known as riders. You may find some of these life insurance riders to consider among the benefits of life insurance. For example, when you purchase the income benefit rider and are unable to work and earn for chronic or terminal illness, the insurer pays for several months to supplement your income.
Heirs Harvest Their Way
The death benefit of life insurance comes to your heirs the way they want. They can take the lump sum at a time or have it in parcels. This flexibility enables a family to plan their finance as they find suitable. They really can reap the harvest the way they find suitable.
Proves that You Are the Valentine
The decision to buy life insurance is a no-questions-asked proof that you care for your family’s future. When you buy a policy, your beloved ones instantly realize you think of their future the way you care for their present. Thus, you can add proof of love to the list of the benefits of life insurance.
Good Grades for Good Customers
The costs of life insurance are cheaper for people who are healthy, strong and of good habits and records. If you maintain a healthy lifestyle with no medical issues and are without legal blemishes, the rates of life insurance come to you as rewards for who you are. Yes, like a good student you get good grade you deserve. Your premiums for insurance will be slimmer than you would otherwise be paying.
The Umbrella for the Rainy Days
Most employers provide group life insurance so that should something happen to you during your service years, your family members find financial support. This provides your family members financial protection when you are not fit for buying life insurance on yourself.
You are exactly right— group life insurance holds the umbrella of protection over your family members’ heads that you cannot otherwise provide.
Big and Broad Bargain
Life insurance is a highly competitive market. Digital marketing has opened the Pandora’s Box that used to be concealed, putting out all the secrets of competitiveness. Thanks to online marketing you can now easily know who the really best or cheapest companies are. So, doing business in an esoteric way is no more possible even for the big shots. As a result, life insurance companies are in invisible cock-fights to get more customers. This has created a consumer-friendly atmosphere that you could not imagine in the recent past. Consequently, bargains are in your favor.
Hopefully, you now know if there are benefits of life insurance for you or not.
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