Getting a life insurance policy is one of the most intelligent financial decisions that one can make. Given demanding lifestyles in this age and day, it is pivotal to save and plan to secure your financial future.
And this is where an affordable life insurance coverage can help you.
Life insurance is an agreement where the insurance provider promises a bonus to the beneficiary in return for the existence or death of the insured. In short, it helps loved ones financially when a policyholder dies.
While reasons to purchase a life insurance policy may be different for everyone, at its core, the decision to obtain insurance is all about ensuring financial security.
Here is why acquiring a life insurance policy is essential.
Eases Your Loved One’s Stress
One of the important aspects about a life insurance plan is not for you but your loved ones. Consider what can happen to your family when you are no longer there to take care of them.
How will your family be able to stay afloat financially?One out of four people says they feel an economic impact in a month if their household’s primary wage earner passes away, according to a 2020 LIMRA study.
Protects Your Business
Around half of all Americans (47.5%) are hired by small enterprises, and there are approximately 30 million owners of small businesses in the U.S. So, building a business is an effective way to ensure financial support for your family, lasting beyond your life.
If you have worked hard to start your venture, a life insurance policy can help keep your business afloat financially if you die. The policy payout provides the company with a cash infusion, helps cover inventory and payroll, and caters to any instant financial needs. Also, it is a cost-effective way compared to borrowing from a credit union or a bank.
Moreover, you can select your beneficiaries and update those as circumstances change. With a life insurance policy, a beneficiary’s essential everyday needs are covered.
Saves the Family Home
Life insurance proceeds can help pay off your debts. In this case, your family won’t have to downsize or move out. Most often, individuals purchase a life insurance policy that aligns with the term of their mortgage. The most extended insurance policy available is usually a 30-year one, which keeps you covered if you have a 30-year mortgage.
Also, life insurance payouts help cover any other mortgage loan that your family may seek after your death.
Covers End-of-Life Expenses
Dying isn’t something people think about every day. However, it is a necessary expense to prepare for. On average, a funeral costs over $9,000. Other medical expenses prior to your death may mean even more expenses for your family.
A life insurance coverage can help you cover costs that occur as end-of-life expenses. A final expense insurance policy is specifically designed for this purpose.
A final expense policy provides a smaller death benefit, usually around $35,000. These plans are typically very affordable. Also, it is easy to qualify without an approval waiting period and a medical exam requirement.
Ensures a Secure Financial Future
There are a lot of good reasons to acquire a life insurance policy. However, it is also imperative to select a policy with no restrictions or conditions. By doing so, your family can utilize the cash for whatever reason, such as to cover student loans, and the payout is usually tax-free.
While the needs and dreams of every family vary, the life insurance policy provides feasible financial options for your family when you die.
Let Matador Insurance Help You Find the Best Life Insurance Policy
Acquiring a life insurance policy is essential, as it safeguards your family, allowing you to leave them a tax-free amount after your death. Moreover, it also helps them cover your loans and mortgages. Reach out to the life insurance professionals at Matador Insurance Services to select the right life insurance policy for your needs and budget.