Insurance policies can be quite confusing for someone who is not working in the industry. However, it is vital to ensure that you are well informed and have the coverage you need to ensure the health of your family and business. Life insurance is especially crucial for breadwinners of every family. Since the emergence of life insurance companies on the market dating back to the mid-1800s, the promise of helping individuals to protect their loved ones by leaving behind some money for them to cover costs after they die, remains till today.
Some misconceptions people have on life insurance.
Do any of these sounds like words you have uttered before?
It’s too expensive.
I’ve got life insurance through my job.
Life insurance—yes, it’s on my list; eventually.
I’m active and healthy!
I don’t have kids.
Nobody who understands life insurance and it benefits as explained below would ever say any of the five phrases above. Below are some of the benefits of life insurance.
First and foremost, the death benefit is one significant advantage of life insurance. Living your family behind after death without any life insurance can cause unimaginable financial and emotional problems on them. Your loved ones can begin struggling to pay bills, student loans, debts, mortgage, funeral expenses, income replacement, and much more. Having a life insurance would prevent your family from facing such horrifying experiences.
Cut your tax bill
Life insurance is designed such that it can cut your estate taxes. Not only that, but life insurance is also exempt from income as well as inheritance taxes for beneficiaries. At some point, some people consider their portfolio a reason to think they will be comfortable. However, they fail to recognize the impact of taxes. Nevertheless, you should note that States have varying policies regarding inheritance taxes. It is imperative to consult your tax adviser and financial representative to understand your situation better.
Another benefit of a life insurance policy is the much-needed flexibility over the type of company you choose, the coverage, duration, policy, beneficiary and so on. Even after you pass away, it is without a doubt that most insurers will allow your family to spend the death benefit on what it considers essential rather than being forced by the insurers to spend it in specific areas. Whatever policy you chose, after a good number of years, various things can be to adjust it in your favor, plus lowering the premiums. If there is a reduction in your income, then decreasing your premiums and death benefit with an option to increase it again in the future would be possible.
Also, it is worth mentioning that Life Insurance rates are now quite readily affordable, particularly term life, considering that people live longer now than ever. Further, as competition sets in, cheap Life Insurance becomes commonplace. Here the decisions you make will affect the price, and it is all about flexibility once again.
Finance the future
In 2017 a study conducted by the Life Insurance Marketing and Research Association (LIMRA) and the nonprofit organization Life Happens revealed that up to 54% of Americans would have it quite hard paying living expenses few days or in just a couple of months if the breadwinner died. Frankly, this finding is troubling for America. And note that only regular day to day expenses are being considered here and not emergency medical expenses, job losses and the like. It accounts for why having life insurance is key to financing the future in life-saving ways.
The need for life insurance increases at varying points of your life based on your financial responsibilities and dependencies. Life insurance plays a flexible, protective and valuable role in your long-term financial strategy.
At Kunevich & Lau insurance, We offer various types of insurance quotes including, Personal, Auto, homeowners, business, life, umbrella and so much more. With over 40 years in the industry, we offer very competitive rates and put your satisfaction as our primary goal!
For more information or appointment scheduling, Call or email us via (617) 731-1015 or Info@weinsurema.com respectively. Alternatively, you can also check our website at http://weinsuremass.com/ or visit us at 241 Washington Street Brookline, MA 02445 or 268 Centre St Newton MA 02458. We take customer servicing very seriously and have a team of professionals waiting to pick your call or answer your email. Get in touch with us today!