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!