Protecting Your Loved Ones: Why A Life Insurance Policy is Essential

Why Do I Need A Life Insurance Policy?

What happens after we die is a thought that none of us enjoy thinking about. However, if we don’t consider this possibility, it can be detrimental for our families. With a life insurance policy, you can sleep soundly knowing that your loved ones will be taken care of in the event that something ever happens to you.

Family Financial Security

The primary reason that individuals purchase life insurance is to provide financial stability for their families. In the event that you pass away, life insurance policies ensure that your family is taken care of. This period of time is already very stressful and emotionally draining for families. Therefore, it is extremely beneficial to provide your family with life insurance. Even with savings accounts, it is unlikely for most families to have their expenses covered for more than six months after the death of a substantial income earner in a household. 

Life insurance can also be utilized for the financial support of a child with a disability or an aging parent or spouse. As the owner of the life insurance policy, you get to decide what is done with your death benefit. 

Business Life Insurance Policy

If you are a business owner, the benefits of having life insurance are even more valuable. There are a plethora of reasons why you should consider life insurance as a business owner: 

  • Life insurance provides financial security for a company in the event of the death of the owner. It can handle debt, cover expenses, and supplement cash flow.
  • If you have a partnership agreement, life insurance can help fund the buyout if your business partner decides to purchase your share of the company in the event of your death. 
  • If you are the owner of a family business, life insurance can be helpful in ensuring that everyone receives an equal inheritance.

Earnings Replacement

If your current income covers a fraction or all of your family’s monthly budget, your family will need life insurance to cover their expenses. This can include groceries, mortgage and car payments, utility payments, clothing, car payments, outstanding debt, and healthcare premiums. If you are unsure about how much life insurance you need, our life insurance calculator is a great resource. By answering a few simple questions about your debts, beneficiaries, and savings, you can determine a life insurance plan that fits your needs. 

Lower Taxes

Life insurance policies are also beneficial because they can offer substantial tax advantages. Cash value life insurance is not taxable in most cases. Therefore, your money will grow faster because you do not have to account for taxes. Additionally, you can access the amount you have paid in premium without owing any taxes. Finally, your beneficiaries usually receive the death benefit free of tax. 

Retirement Income 

Aside from benefits for your loved ones, life insurance can also provide a benefit to you by supplementing your retirement income. You can utilize the cash value of your policy to distribute regular payments as a form of retirement income. 

Legacy Preparation 

Life insurance policies are also beneficial for leaving money to your loved ones or a charity organization after you pass away. You can utilize this money to assist in the payment of your family’s college education or to benefit a religious, nonprofit, or arts organization. 

Cash Value For Your Life Insurance Policy

Some life insurance plans offer you an added benefit: cash value. As you put money into your policy premiums, the life insurance company invests your money. You can withdraw this cash value while you are still living and use it as an emergency fund.   

Estate Coverage

After-death expenses can be more expensive than you think. According to Funeralocity, the average cost of a funeral in Georgia is $8,533. On top of that, your family also may face costs associated with estate taxes, medical bills, and outstanding debts.  

Health Coverage

Certain life insurance plans offer healthcare benefits. You can personalize your coverage to include services like long-term care. For example, if you become terminally ill, your life insurance can offer a payout to help you cover these costs. Other plans allow you to utilize part or all of your death benefit to pay for long-term care while you are still living.

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Ready To Find The Right Life Insurance Policy For You? Call Us Today!

Unsure how to go about finding a life insurance policy that is affordable and the right choice for your family? Contact Arlington Greene Agency now. Our family-owned insurance brokerage is equipped with the insight to uncover the firm that is right for you. We are here to answer all your insurance questions and make this an easy process for you and your family.

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