5 Important Reasons Why You Need Life Insurance

Insurance can be confusing and it’s hard to know what you really need or want. But here are five very good reasons why you need life insurance.

 

As we grow older, get married, build families and start businesses, we come to realize more and more that life insurance is a fundamental part of having a sound financial plan. Depending on your type of policy, life insurance is fairly cheap, which means there’s no excuse not to get coverage now. Plus, over the years, you’ll find comfort in knowing money will be available to protect your loved ones in the event of your passing. In addition, it will provide you money in the event that you are not able to provide for yourself or your family due to illness such as Terminal Illness, Chronical Illness, Critical Illness, and Critical Injury. Here are 3 important reasons why having life insurance is important.

 

1. PROVIDES TAX-FREE INCOME FOR YOUR FAMILY AND LOVED ONES

If your loved ones depend on your financial support for their livelihood, then life insurance is a must, because it replaces your income when you die. This is especially important for parents of young children or adults who would find it difficult to sustain their standard of living if they no longer had access to the income provide by their partner. You will also need to provide enough money to cover the costs of hiring someone to cover the day-to-day household tasks, like cleaning, laundry, cooking, childcare and everything else a growing family needs. Life insurance is also a financial tool that creates income tax-free funds that are immediately available at upon your passing. The insurance proceeds can be used to pay off debt, replace lost income, and allow those who depend on you to maintain their lifestyle. 

 

Even if you don’t have any other assets to pass to your heirs, you can create an inheritance by buying a life insurance policy and naming them as beneficiaries. This is a great way to set your kids up for a solid financial future and provide for any monetary needs that will arise.

 

2. PROVIDES BENEFITS FOR YOU IN THE EVENT THAT YOU ARE TOO ILL

In addition to providing benefit in the event of your death, it will also provide benefit if you become ill. Our policies come with living benefit riders at no additional costs to you. This riders will accelerate your death benefit while you are still alive. There are 4 Accelerated Benefit Riders available, and they are called:

  • Accelerated Benefits Rider for Terminal Illness (ABR), which allows for the payment of a portion of an
    insured’s death benefit if the insured is terminally ill. Terminally ill means that the insured has been certified by a physician as having an illness or chronic condition which can reasonably be expected to result in death in 24 months or less. There is no premium for this rider. However, the actual payment will be less than the portion of the death benefit accelerated because the benefits are paid prior to death.

  • Accelerated Benefits Rider for Chronic Illness (ABR), which allows for the payment of a portion of an insured’s death benefit if the insured is chronically ill. Chronically ill means that the insured has been certified by a licensed health care practitioner as being unable to perform 2 out of 6 activities of daily living or is cognitively impaired. The activities of daily living are bathing, continence, dressing, eating, toileting, and transferring. There is no premium for this rider. However, the actual payment will be less than the portion of the death benefit accelerated because the benefits
    are paid prior to death.

  • Accelerated Benefits Rider for Critical Illness (ABR), which allows for the payment of a portion of the insured’s death benefit if the insured experiences a qualifying event covered under the rider. Subject to state approval, the qualifying events may include: aorta graft surgery, aplastic anemia, blindness (corrected vision no greater than 20/200 in both eyes), cancer, cystic fibrosis, diagnosis of ALS (Amyotrophic Lateral Sclerosis), end stage renal failure, heart attack, heart valve replacement, major organ transplant, motor neuron disease, stroke and sudden cardiac arrest. There is no premium for this rider. However, the actual payment will be less than the portion of the death benefit accelerated because the benefits are paid prior to death.

  • Accelerated Benefits Rider for Critical Injury (ABR), which allows for the payment of a portion of the insured’s death benefit if the insured experiences a qualifying event covered under the rider. The qualifying events may include: coma, paralysis, severe burns and traumatic brain injury. There is no premium for this rider. However, the actual payment will be less than the portion of the death benefit accelerated because the benefits are paid prior to death.

 

3. PROVIDES TAX-FREE LIFETIME INCOME

Life insurance is designed for clients who appreciate the financial protection life insurance can offer through both death benefit and accumulation potential. It has the upside potential - through different index strategies - that you'd expect from an indexed product, but it also has downside protection with a 0% floor. Life insurance can provide for tax-deferred build up of policy cash value. Values that you can borrow or withdraw – income tax free – to achieve your unique and personal objectives, including:

  • Meeting unexpected emergencies

  • Helping pay for higher education costs

  • Supplementing your retirement income

 

4. TO ADD MORE FINANCIAL SECURITY 

Like most parents you probably want to know your kids will be well taken care of when you’re gone. You not only want them to get a quality college education, but to provide for other life ventures like getting married or starting a business. For this reason, additional coverage is absolutely essential while your kids are still at home.

 

5. TO BRING PEACE OF MIND

We can’t know when we’ll pass away or when we'll be disabled. One thing we know, it could happen today, tomorrow or 50 years from now, but it will happen eventually. No amount of money could ever replace a person. But more than anything, life insurance can help provide protection for the uncertainties in life. Without a doubt, having life insurance coverage will bring you and your family peace of mind. It’s one thing you can be sure of and you’ll no longer have to question whether they’ll be taken care of when you’re gone. Life insurance protects your heirs from the unknown and helps them through an otherwise difficult time of loss.

 

For more information, Call one of our licensed specialists to schedule your free consultation today. 

1-800-278-2105

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