Why you should consider buying life insurance20 March, 2023 2:38 PM
Everyone has different reasons for buying insurance. But at the heart of the decision to purchase insurance is financial security for yourself and those you care about. Find out why life insurance is important and who needs it.
Why is life insurance important?
Purchasing life insurance can protect your spouse and children from potentially devastating financial loss if something happens to you.
It provides financial security, helps pay off debts, helps with living expenses, and helps with medical or contingent expenses.
Life insurance provides you with cash when you need it most
Your life insurance policy provides funds for a set amount when you need them. After your death, your family will immediately receive benefits from your policy. In addition, death benefits are generally not subject to federal income tax.
For example, a $500,000 policy provides a death benefit of $500,000 directly to your beneficiaries.
Steps in the Insurance Buying Process
- Determine your goals, determine the amount of coverage you will need over time to achieve your goals, and determine what you can afford.
- Find out what type of insurance can help meet your needs.
- Choose the type of policy (or combination of types) that best suits your needs after taking into account the initial premium payment, any possible premium increases over time, any additional death benefit and any of life insurance that you could receive before your death Complete .
Remember that working with a financial professional can help simplify the process.
A finance professional can explain the differences between policy types, help you calculate the amount you need, and suggest possible options that best suit your needs.
Reasons to buy life insurance:
life insurance can provide you with lasting peace of mind in securing your estate. That's because the right coverage can provide a valuable set of benefits, many of which are backed by New York Life's Loss Adjustability Guarantee, so you and your loved ones know exactly what you're getting. 3 Of course, you need a long-term commitment to pay your premiums and keep your policy in force.
Here are some of the most common reasons to purchase life insurance:
- Warranty Protection: If you have a family, business or others who depend on you, the life insurance benefit of a Whole life insurance policy can serve as a financial safety net. On your death, your heirs will receive a fully paid-up guaranteed capital (provided that all premiums have been paid and that there is no outstanding credit). It's essential protection you can count on to help your loved ones when they need it.
- Income Replacement: Imagine what would happen to your family if the income you provided suddenly disappeared. Whole life insurance can help ensure your loved ones have enough money to help you:
- Pay your mortgage
- Pay for childcare, healthcare, or other services
- Pay school fees or other college expenses
- Eliminate household debt
- Save a family business
- Non-taxable benefit: Your beneficiaries will appreciate every penny you leave them. Indeed, the benefits of life insurance generally pass through exemption from federal income tax.
- Guaranteed cash value growth: When you pay your premiums, your whole life insurance policy creates cash value that is guaranteed to grow, tax-deferred, and can help you achieve a variety of goals Financial:
- Supplemental Retirement Income
- Funded Education for Children or Grandchildren
- Paying Off Your Mortgage
- Protecting Existing Assets
- Creating an Emergency Fund
- Dividend Potential: One of the Benefits of Buying Insurance Whole Life with New York Life is that you will be entitled to dividends. Although not guaranteed, when you get premiums, you can get money and use it to offset your premiums, or use it to buy additional paid-up insurance that increases your coverage and cash value and use to offset your premium. , or take money.
- Optional Riders: There are many ways to customize a whole life insurance policy to meet your individual needs. For an additional fee, you can use riders to buy additional protection without further subscription, pay your premiums when you become disabled, use part of your face value to pay for chronic conditions, or buy coverage for your children. Your agent can help you decide if these add-ons are right for you.