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Why is Life Insurance Important?

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Investing in life insurance now is one of the best things you can do for your loved ones in the future. Not only is it an integral part of any financial plan, it offers peace of mind. Plus, with so many affordable options out there, it’s easy to find one that can fit in with your financial needs and goals. 

What is Life Insurance?

By making premium payments, you enter an agreement with your insurance company ensuring that a lump sum will go to your beneficiaries after your death. This helps mitigate financial concerns that can arise and provides financial relief to your loved ones during a difficult time. 

There are two main types: term and permanent. Permanent insurance provides lifetime coverage while term only covers a certain period of time. 

Do I Need Life Insurance? 

The short answer: yes. There are a lot of reasons to invest in life insurance, and almost no drawbacks. Some of the reasons to consider getting it? 

  • Taking Care of Loved Ones.

If anyone depends on your income (such as children, a spouse, or aging parents), insurance will provide that income, which can help keep a household afloat and running smoothly. Did you know that life insurance payouts can help pay for someone to come in and help with household chores that might become hard to manage? They can!

  • Leaving an Inheritance. 

Regardless of the rest of your financial situation, it can set up your beneficiaries with an inheritance! This can help loved ones establish financial stability, and potentially cover larger costs down the line, including college, down payments, and weddings.

  • Paying Off Debt. 

Beyond providing an inheritance, it can help your loved one pay off your acquired debt, including car or mortgage payments. Did you know it can also help pay for funeral and burial costs? That’s great news because both of those can become quite costly. 

The Benefits of Life Insurance 

Peace of mind isn’t the only benefit. As we wrote about a few months ago, there are actually tax advantages! In most cases, the full amount owed is paid out to your beneficiary, without having income tax taken out of it. That means the money you invest gets to be utilized by your loved ones. Simply put, life insurance is an effective strategy for investing in the future. 

You’ll want to look at your individual lifestyle and needs before you choose the right life insurance. And as things change, reassess your chosen insurance to see if it’s still the best fit for you. 

Trajan Wealth is Here to Guide You 

At Trajan Wealth, we’re here to answer your questions and help you get your finances solidified. Check out how we can help you navigate life insurance. Ready to invest in your financial future? Reach out to connect with our advisors today! 

© 2024 Trajan® Wealth LLC. Nothing in this blog is intended as investment advice, nor is it an offer to buy or sell any security. Please consult your financial advisor for questions about your personal financial situation. All investments involve risk, including the potential for loss. Trajan Wealth clients and employees may have a position in any of the securities mentioned. Portfolio holdings and other data are subject to change at any time and without notice. Additionally, the above links provided as a convenience and for informational purposes only; they do not constitute an endorsement or an approval by Trajan Wealth, L.L.C., of any of the products, services or opinions of the corporation or organization or individual. Trajan Wealth, L.L.C., bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. These materials are for informational and educational purposes and are not designed, nor intended, to apply to any person’s individual circumstances. It does not take into account the specific investment objectives, tax and financial condition, or particular needs of any specific person. Please consult with your legal and/or tax advisor before making any tax-related decisions.

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