Life insurance is incredibly important to carry throughout your adult life. As soon as you get married, accrue debts, own property, and so forth; you should consider getting a life insurance policy. Many people wonder if they should get a life insurance policy even if they have a good savings. In most cases the answer is still yes. Here are some reasons you should get a life insurance policy, whether or not you have substantial savings.
1. A Life Insurance Policy Will Be Paid On Death
One of the main reasons to get a life insurance policy is that it will be paid on death. This means that as soon as the life insurance company receives the death certificate they will begin paying out to the family. The reason this is so important is that depending on the nature of your estate plan, your savings and all of your property and money could be tied up. If your family has a dispute over the money in the estate or the way it is organized it could take a long time, even years to get that money. Thus, even though you thought you had money for your family to live off of after your death, it may not be available. A life insurance policy will immediately be available to the person that you named beneficiary.
2. A Life Insurance Policy Can Cover Unforeseen Expenses
Although you may have savings set aside to care for your family and loved ones, there is a chance that there will be many unforeseen expenses associated with your death. You might accrue a great deal of medical expenses; you could have legal fees and much more. This is why life insurance is so helpful. It can pay for the funeral, and all of those expenses that you didn't plan on so that your family can use the money you saved for their needs.
3. A Life Insurance Policy Is Free From Taxes
Lastly, your life insurance policy will not be taxed. This means that every penny you purchase in the policy will go straight to your family. You can't guarantee that with your savings. In many cases your estate will be taxed upon death and as assets transfer to your beneficiaries. You can't guarantee that they will get as much as you once thought because of estate taxes. Luckily, there are no taxes on life insurance.
These are just a couple reasons you should always carry a life insurance policy. Contact a business, such as the Advantage Insurance Agency, Inc, for more information.