Life insurance is something that very few people -if anyone- can get excited about. Nobody wants to think about how their family will be affected by their death. The thought of choosing and paying for another complex insurance policy doesn’t sound appealing either, especially to the young and healthy.
The truth is, life insurance has a number of benefits that you may not be considering, and while it may not be the most pleasant thing to think about, a good policy could save the ones you care about from financial hardship. Some policies could even provide income for you to use during your life. If you are reluctant to buy a policy, or just want to know why it’s a good idea, read our 5 reasons below!
- It’s more affordable than you would expect. According to finder.com[1] , the average premium payment for a $250,000, 20-year term life policy for someone who is 30 years old is around $15.98 per month. For someone who is 40 years old, the average monthly premium for the same coverage is only $21.71.
- The decision doesn’t have to be complicated. Life insurance policies may seem complex, and they can be, but with the help of a knowledgeable agent it shouldn’t be difficult to assess your personal needs and goals to match them with the appropriate policy. For those who simply want to provide a death benefit for their family in the event that they die within a certain period of time, a term life insurance policy will most likely be the right choice. For someone who wants more added benefits from their policy, such as the ability to grow a cash value that can be used during the owner’s lifetime, a whole life policy may be a more effective choice.
- It has the potential to build cash value, tax-deferred. The premiums for permanent life insurance policies are generally higher for term policies, but they can include a cash value savings component, which in some cases can be borrowed against or withdrawn for use2 .
- It has the potential to provide retirement income. The cash value acquired in a permanent life insurance policy is often used for various reasons; buying a home, funding a child’s college education, making renovations, etc. It can even help you maximize your retirement to ensure you can live the lifestyle you desire without running out of money.
- It will give you comfort. The fact is, most families would immediately feel the financial effects of losing the household’s primary earner. If your general financial plan includes providing for your family while you’re alive, you need to consider the possible need to provide for them after your death.
If you need assistance choosing a life insurance policy that meets your unique needs and works to achieve your personal financial goals, contact Absolute Retirement Solutions today and discuss your situation with an experienced professional. We’re here to help you protect your family’s future and retire with confidence.
When deciding to purchase life insurance, be sure to carefully review all policy features, benefits, restrictions, terms and costs. Life insurance involves fees and charges including surrender penalties for early withdrawals. You may need to qualify for coverage through underwriting. Insurance product guarantees are backed by the financial strength and claims-paying ability of the issuing company.
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[1]https://www.finder.com/average-cost-of-life-insurance.April2021
[2]Policy loans will reduce available cash values and death benefits, and may cause the policy to lapse or affect any guarantees against lapse. Additional premium payments may be required to keep the policy in force. In the event of a lapse, outstanding policy loans in excess of unrecovered cost basis will be subject ordinary income tax.