5 Reasons to Have Life Insurance
We don’t want to think about our or any family member’s death but we can’t escape it no matter how hard we try. After you die, your family will live and thus, you need to think about giving them a good life after your death. Getting life insurance before you die can be a smart decision for your family’s well-being.
Want to know why you should have life insurance? Find out the key reasons below:
1. Meet Financial Needs
If you are the only wage earner in your family, the other members would have a tough time paying living costs immediately after your death. Life insurance helps in planning your family’s long-term health and happiness, and they get peace of mind that they will be financially secure.
You need life insurance to act like a savings account so no one suffers financially after you die. The money you get from the policy will help your family meet important financial requirements, such as funeral costs, college fees, and living expenses.
2. Pay a Reasonable Amount
Many people have the misconception that life insurance is quite expensive. However, it is quite reasonable and accessible. Let’s say you can go for a 20-year term life insurance policy with $200,000 of coverage for approximately $13 a month. If you break down the amount you pay every month, you can easily understand that it’s quite a reasonable amount.
3. Estate tax concerns
If you are wealthy and are concerned with estate taxes or have a business that you intend to leave to only some of your children, a permanent Life insurance policy may be an option to consider. By owning this type of policy outside your estate, the death benefit may be used to equalize inheritance to each child and to pay for estate taxes.
4. It’s Much More Than Only Life Insurance
If you settle into a life insurance contract or a specific type of policy, you may be able to get much more than death coverage. You can have a life insurance policy, sometimes known as a hybrid policy, which includes living benefits such as a long-term care, critical care, chronic care and terminal illness benefits.
Do you want living benefits from life insurance policy? You should consider having these benefits in your life insurance policy if you don’t have separate coverages for these situations, otherwise, your beneficiary has only death benefits. You can find different riders that can help you in customizing and increasing your coverage.
5. Maximize Your Retirement Benefits
Living benefits in your life insurance policy can extend the financial and retirement benefits by potentially reducing withdrawals from your retirement savings in the event of a critical care event, chronic care or long-term care needs.
The points above reflect why you should have a life insurance policy for your family. At CPR Investments, our advisors can perform a detailed assessment to determine how much life insurance your family needs after your death. Get in touch with us today!