Everywhere you turn, you see people selling life insurance – through the mail, in magazines, on the television, at your office, and even at your bank.
You already know that you need life insurance, but shopping for life insurance can be overwhelming, especially if you don’t understand how the coverage works.
Unlike auto or health insurance, this type of insurance can be used for a variety of purposes. Here are some of the most common reasons to purchase life insurance:
Cover final expenses
When you die, your family will face a lot of unexpected expenses in addition to your funeral costs. You surely don’t want to burden your family with medical bills, business loans, and credit card debt when you are gone. You should safeguard your family and their future by getting life insurance to cover these expenses.
Provide for the needs of the family
Losing a loved one is difficult enough; you don’t want your family suffering financially, too. Life insurance can provide your loved ones with the money they need to cover expenses and even the fund the cost of your children’s education if you pass away. Some life insurance policies even pay benefits if you become sick to help with the medical bills.
Pay off debts
There’s no guarantee that you’ll pay off your all debts, especially if you accumulate any medical bills in your final days. The good thing is that life insurance can cover these debts, so your family won’t have to worry about them when you are gone. You don’t want your family’s last memory of you to be the pile of bills you left behind.
Pay estate taxes
If you have a substantial net worth, your family could owe estate taxes to the IRS and the state you reside in when you pass away. To avoid or reduce these taxes, an irrevocable life insurance trust can be created to settle your debts and prevent your loved ones from losing the assets you intend to leave behind for them.
Why buying life insurance is important
In the end, having life insurance gives you more peace of mind. You’ll know that whatever happens, your family will be taken care of. You love them, and you wouldn’t want to leave them in debt. Setting aside a little money to pay for your insurance each month will protect your family and provide them when you are no longer able to.
There are lots of different types of life insurance policies available, but some offer much better coverage than others. An experienced agent can help you find your best option and the lowest price by shopping the market. Take JRC Insurance Group for instance – they represent almost 50 companies with dozens of affordable options.
Don’t settle for an expensive policy with inadequate coverage; compare your options from multiple companies before you decide. Every life insurance company sets its own rates and approval guidelines – applying with the right company could save you 30% or more on the cost of your policy.
Author: Cliff Pendell