According to a recent study, only 53% of men and 46% of women in the U.S. have a life insurance policy.
Despite life insurance being the foundation of any solid financial plan, many are choosing to forgo it. This leaves questions about the financial security of their family should anything happen to them.
The lack of a life insurance plan often throws a family into disarray with the loss of a family provider. Don’t let this happen to you. Life insurance plans are easy to apply for and are affordable for most people.
Our life insurance guide will tell you about the many benefits of life insurance and why it should be a priority for you and your family.
Life Insurance Benefits Are Tax-Free
If you have a valid life insurance policy when you die, your beneficiary(s) will receive a lump sum death benefit. This amount does not need to be included in your gross income and does not need to be reported to the IRS.
The only amount you would have to claim is if any interest has been accrued, which is not the case with most life insurance policies.
Your Dependents Living Expenses Will Be Covered
If you take out a life insurance amount of the recommended seven to ten times your annual income, that should secure your family for a long while. Your loved ones who once depended on your income won’t have to worry about making ends meet.
Some of the expenses your insurance policy could cover living expenses, mortgages or rent, and college loans, among other things.
It Can Cover Funeral Expenses
Many Americans are unable to cover the cost of an unexpected $1,000 expense. With the elevated costs of funeral expenses, many of these families would have to borrow money to pay for it.
Dealing with the cost of funeral and burial expenses during a trying time is difficult. But with a life insurance policy, your family would be safe from the costs and the financial stress that comes with having to bury a loved one.
You Can Add Coverage for Terminal or Chronic Illness
If you wish to prepare for the possibility of a chronic or terminal illness, some insurance riders allow you to adjust coverage or add coverage to your policy.
This rider would allow you to access all or some of your death benefits under specific circumstances. If you are suffering from an illness and have a life expectancy of fewer than 12 months, you would be able to use the death benefit for care-related expenses.
Life Insurance Benefits
There are many benefits to life insurance, but above all, it means peace of mind. It isn’t just for the wealthy either. There are many affordable life insurance policies for people at every income level. If you invest in life insurance, your loved ones can make ends meet if you are not around to provide for them.
Contact RBP Insurance today to get a free life insurance policy quote or to ask us any insurance questions. We provide the highest level of service with a personal touch to fill all of your insurance needs.