Importance of Life Insurance for Your Family
February is of course labeled as the month of love because Valentine’s Day is smack dab in the middle of it. However, love should be celebrated every day not just one day. Whether that’s love for a person, love for a pet, love for your job, love for your hobby, etc. Love is what keeps the world strong because with love we can conquer all.
With that being said, one of the best ways to show your family, that you do in fact love them, is to invest in a life insurance plan for them. Every person knows why life insurance is important but the sad truth is that many people choose to ignore the reality of what would happen if they suddenly passed without proper protection.
UN-Fun Fact: The average cost of funeral expenses is around $10,000.
If your family has that kind of money lying around just waiting for a rainy day, then okay now you can stop reading, BUT odds are, you do not. That is why life insurance helps. Without it, a death in the family could leave remaining members with a large bill for final expenses, or even worse, loss of family home because the mortgage can no longer be covered.
Through research we have done and the knowledge we already possess, here are the top reasons why life insurance is so important:
- Pay Off Debts: A life insurance policy can pay off any debts that you leave behind that would be a burden to your family. Debts such as a a mortgage, credit cards, car loans and even your funeral expenses can have a dramatic impact on your family and their lifestyle.
- Provide for Your Kids: A life insurance policy will ensure that your children can go to college, buy a home and even pay for their wedding if you die unexpectedly.
- Peace of Mind: A term life insurance policy is an inexpensive way to give you and your family members peace of mind, knowing that they will be protected if something happens to you. You will no longer have to worry about their financial future and can rest easy knowing they will be able to continue their current lifestyle.
- Funerals Are Pricey: Even a basic funeral can cost $7,000-$10,000. A small life insurance policy will make sure your final expenses are covered so your family doesn’t have one more worry at an already stressful time.
- Supplement Your Retirement: Permanent life insurance policies accumulate a cash value over the life of the policy that can be borrowed against tax-free. These policies can be used to supplement your retirement if your other investments fall short. These policies often come with fairly high fees, so be sure to compare the costs to those of other investment vehicles.
- Protect Your Business: Regardless of whether you are using a life insurance policy to insure a key employee, fund a buy/sell agreement or simply provide a tax-free cash infusion (borrowing against the cash value of a permanent policy), life insurance can be a major asset to your business.
If after reading this and realizing having a life insurance plan is the perfect way to show your family you love them, please give us a call at (203) 237-7900 and we can help you come up with the perfect plan. It may not be the most generic gift to give, but at the end of the day, it is one of the most meaningful. Think of your family and know that with life insurance, they will never see a financial burden due to a death.