Life insurance is one of the most important aspects of your family’s financial future but often one of the most overlooked. You’ve worked hard to provide a wonderful life for your family. Providing for the future of that lifestyle is just as crucial. The best way to do that is through life insurance.
Protects Your Assets
When death results in the reduction of a household income, the consequences can be catastrophic. Mortgage loans still expect to receive loan payments. Car payments are still due, and credit card companies still send bills. Even if your family has decided that in the worst-case scenario, they will simply reduce or change their lifestyle to account for a reduction in household income by selling the home for a smaller one or otherwise adjusting their way of life, this still means planning, time, and stress during an already overwhelmingly difficult time. During this adjustment, missed payments can result in negative credit consequences.
However, with life insurance in place, death benefits are typically paid quickly and can be used in whatever manner the beneficiary chooses, whether for immediate needs or long-term sustainability. With this comes the freedom to slow down, manage decision-making, and make the best long-term choices for the family’s wellbeing.
Proceeds Are Tax-Free
While there may be other financial assets available, access to those assets could take substantial time going through probate and is likely to be taxable. Life insurance proceeds do not require probate and are paid to the beneficiary listed on the policy, usually with only a death certificate and proper identification as the beneficiary. With the exception of any interest earned through the life insurance policy, the death benefit itself is not taxable under most circumstances.
Additionally, life insurance provides ease of accessibility to funds for final expenses. Dealing with the death of a loved one shouldn’t have to be compounded with worry about how to pay for final expenses, such as burial costs and no family should have to resort to a Go Fund Me account in order to say their final farewells.
Provides Peace of Mind
With a wide variety of life insurance policy types and coverage amounts available, the peace of mind of knowing your family will be ok, even if you aren’t here to provide for them, provides peace of mind like none other. From everyday expenses to college education, you can secure your family’s future with life insurance should the worst-case scenario become a reality.