It is unpleasant to think of death, but we shouldn't overlook the
possibility of losing our life unexpectedly and the consequences that
it may have on our families. The death of a relative is a heartbreaking
event and it can also be financially disastrous. If you are the
breadwinner, you need life insurance to secure your family's financial
future.
A life insurance policy guarantees a death benefit, which
will be paid by the agency to your beneficiaries, after and if you (the
insured) die. There are many reasons to carry life insurance! Here are
just a few:
1. You pay for your own funeral. Dying is not free! If
you do not have coverage, your family will have to pay for your
funeral. Your last remains must be properly disposed of, which implies
much paperwork, taxes and extra expenses like: casket, funeral stone,
plot etc.
2. You can pay off the mortgage. If you have one or more
mortgage loans, your death may leave your family in danger of being
evicted if they can't continue paying the interest rate. If you have a
life insurance policy, the death benefit can be used by your remaining
family to pay off the mortgage and keep the house!
3. You can
provide college education for your children. Education is the key to a
golden future. If you carry life coverage, you can open a trust fund and
have the insurance money deposited there and give instructions to use
the cash value to pay for your children's college education. In this way
you can have control over the money and make sure that they are used to
pay for education!
4. You can borrow against the policy. If you
have permanent life coverage, it is possible to borrow money against the
policy. Taking out a loan may prove very useful if you are in financial
difficulties, or if you want to invest the money into a business.
5.
You can protect your assets from taxes. Carrying life coverage can be a
good way to leave a tax-free inheritance for your relatives. The death
benefit is not taxable, so your family will receive the whole guaranteed
payment. Furthermore, a life insurance policy is not considered an
asset, which means that you do not pay income tax if you carry coverage.
In
conclusion, carrying life coverage is very important for the well-being
of your family. Think of it as a way of providing for you loved ones
even if you are not living anymore!
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