When you hear about life insurance, you might not exactly know what it’s good for. Your family is financially secure. You don’t anticipate an early death. What are the financial benefits this coverage can provide for you?
Don’t let your own security fool you. Your death, whether young or in old age, will remove the value you have provided to so many throughout your life. Without life insurance, you might leave your survivors vulnerable to financial challenges.
Knowing What Your Survivors Need
When you die, you will likely leave behind affairs you need settled. This responsibility likely will fall on your survivors. These might include spouses, children, close friends or even business managers. The important thing is that you leave a financial reserve to assist them in settling your estate.
Life insurance provides funds to take care of your finances after your death. Therefore, almost anyone can use the money provided by your policy. These payouts can help multiple parties in many different ways.
- Use your policy’s funds for final expenses. These might include funeral and burial costs, which often prove extremely expensive. It can protect your family from running up significant debt.
- Speaking of debt, you can use a payout to settle outstanding bills. Most life insurance policies do not go through escrow. This means your beneficiaries receive the funds directly. The tax man and your creditors cannot get a hand on it until it comes to your beneficiaries.
- Funds can provide living expenses for survivors. Remember, your standard income will stop at your death. Your policy can help stop your family from experiencing insecurity.
- For young survivors, like dependent children, you can use policy funds as support. You can often set up trust funds with specific stipulations on how recipients are to use the funds. So, if you want funds to go towards someone’s college education, you can likely establish that in trust.
- You can also donate policies to charities, churches or other causes you care about. Therefore, by naming these groups as beneficiaries, you can leave a legacy behind.
These are just a few of your options with life insurance. Indeed, once beneficiaries receive the money, they can often use it as they see fit. Nevertheless, if you want to use policies for a specific reason, make sure you tell your agent at 844.926.0860. They can help you select limits and beneficiary instructions to suit your needs.
Also Read: Leaving Life Insurance For Your Child's Future Education