But no one wants his/her would-have-been beneficiary to say, “I wish we had gotten life insurance!” Here are 5 scenarios where that could happen:
1. Unable To Pay For Final Expenses
These days, a funeral and other final expenses can often cost upwards of $10,000, and that’s a lot more than many have available in cash on hand – especially after just losing (as it may be) the breadwinner of the family.
You can get life insurance policies very, very cheap that do nothing but cover final expenses, and you can get them even late in life. One way or another, final expenses will be paid – but no one wants to force their bereaved loved ones to empty their savings or go into debt to pay them.
2. We Are Going To Lose Our Home Now
For good reasons, many get life insurance that is “calibrated” to their mortgage to ensure that, whenever they pass away, their family won’t suddenly lose the family home as a result.
If you are the main provider of income for your household and then suddenly that income is cut off, how will your loved one pay a monthly mortgage of $1,000 or more per month? If Social Security and pension funds are eaten up by the mortgage, how will food and other necessaries be afforded?
3. Your Kids Can’t Go To College As Planned
You may have saved up money for a college fund for your children, but an untimely passing could mean that that money must be used to take care of basic living expenses, that your kids have to work to help keep the family finances afloat, and that college is totally impractical.
A life insurance policy can take care of those other expenses and free up your college savings to do what they were intended to do. And of course, with younger children, a life insurance benefit will help your spouse pay for the costs of raising kids.
4. The Business You Built Immediately Crumbles
You work all your life to build a business, and then as soon as you are gone, your business immediately collapses in your absence due to financial strain.
That scenario can be avoided when business partners buy a life insurance policy on each other (both ways). The benefit would pay to buy out the partner’s share in the business and allow the surviving partner to continue the legacy.
5. Estate Taxes Are Gutting The Inheritance
Leaving your estate to your spouse or kids is not a tax-free proposition. But anything they receive from a life insurance policy IS tax free. For larger estates especially, this is an essential tax hedge to help you pass on your inheritance.
These are just 5 ways that a good life policy can help you avert a bad situation for your loved ones after you leave. To learn other benefits of life insurance, contact Flagler County (FL) Insurance Agency today!