What is life insurance?
Life insurance is an agreement you buy from an insurance carrier and in return, the assurer promises to give the beneficiary of the policy with a certain amount of money after your death. An unexpected incident like death would help your family to be financially stable even after you leave.
Do you have life insurance?
Are you aware of the situation your family might get into for not having one? Ask yourself a couple of questions to know your situation. Are you the sole earner in your family? Are your family and household dependent on you? If something happens to you unexpectedly, is there a way your family can survive and not be forced to live on the streets? Do you have a plan B if your income stops for the security of your family? If any of these answers get you worried, it is always better to be safe than sorry.
If you do have life insurance, how much do you have it? Do you think it is enough for your family to not compromise on their necessities? Would it make them compromise on their dreams and ambitions? Imagine your son who got into his dream university but must drop on merely because he cannot afford it anymore. You do not want your family’s future at stake in your absence. Life insurance acts as huge security financially.
You don’t want them to spend everything they have for your funeral and be left with nothing. Mourning plus financial instability could be a horrifying time for them.
We have two types of life insurance policies
Protection policy (term) and Investment policy. A protection policy is designed to provide a benefit, most of a lump sum amount in an unfortunate event such as sudden death. On the other hand, investment policy has the main objective of helping your money grow.
Also, the benefits and returns you get after your death to your beneficiary are income tax-free. As a beneficiary, the life insurance returns you receive because of the death of the insured person isn’t included in the gross income and hence doesn’t need to be reported in your taxes. However, the interest you earn on the return is taxable.
I have seen multiple families living in good communities in huge mansions having to leave sell everything they ever owned and live almost on the streets. Compromising not only their lifestyle but also their dreams and ambitions in life.
Along with making sure you provide the income for your family’s daily expenses; you should also make sure they have something to take care of their outstanding debt. Debt such as a house or car loans, credit cards, or even the funeral and burial cost. You do not want them to incur the cost and be in debt for the rest of their lives.
Having life insurance always brings peace of mind to yourself and your family. You would spend most of your life in stress worrying about your family without you. Thus, have life insurance and live a much-relaxed life.
To get help and pricing for your insurance needs, call us at 1-844-410-1320 or request an agent here.
See our other websites: