Life insurance is a crucial part of financial planning although an element that is neglected by many. If you have been doing without life insurance up to now, here are six reasons why you should prioritise putting a policy in place.
- It’s an easy way to protect your loved ones
You’d do anything for your loved ones, right? You not only work hard to provide for them now and in the future but I imagine you would go to extreme lengths – like throwing yourself under a moving car, fighting a polar bear or jumping off a cliff – to protect your children. Why then would you not take the far easier step of taking out life insurance to ensure that your nearest and dearest are financially provided for in the event of your death?
- …even from beyond the grave!
Life insurance is a tool which allows you to care for your spouse and children from beyond the grave! How? When you die, a life insurance payout will protect them against potentially devastating financial losses when you are no longer there to pay for everyday expenses.
- You can guarantee your family’s financial future
Whether you are a breadwinner or a stay-at-home parent, your family’s lifestyle could be seriously under threat if something unexpected were to happen to you. Life insurance can plug the gap of a monthly salary or the help needed to replace someone running a home and ensure that ongoing living expenses are covered and that major lifestyle changes are not necessary.
There are many reasons to buy life insurance but it all boils down to protecting your loved ones.
- It buys your family time and choices at a stressful time
After the unexpected death of a family member those left behind are often faced with difficult decisions to make because certain financial responsibilities – rent or mortgage, food, insurance, school fees etc – need to be met even when you’re gone. Without life insurance as a buffer, decisions such as downsizing to a smaller home or finding a new job often have to be made quickly at a time when people are grieving and in an emotion state which is not conducive to making sensible choices. Life insurance buys your family time to recover from your death and adjust to their new circumstances before having to make life-changing choices.
- To provide tax-free cash when it is needed most
You can take out a life insurance policy to ensure that your family receive a specified sum exactly when they need it. This means that they could receive hundreds of thousands of dollars, or even millions, almost immediately after you die without having to wait for a lengthy probate process. Life insurance death benefits payouts are tax-free so a $500,000 policy means that they get $500,000.
- To cover inheritance tax fees
If you leave a large estate, there may well be inheritance tax to pay and your family will need easily accessible funds to cover it. Life insurance is a common estate planning tool which allows for this – the premiums will be less than the inheritance tax due and the payout will provide funds for your family to pay the tax owing to the government in order to complete the probate process.
Taking out life insurance is a demonstration of the love you have for your family. It gives them choices by providing the funds to pay off debts, cover monthly housing payments and ongoing living expenses and even to fund a college education for your children or grandchildren. A life insurance policy could protect them from a whole host of possible unpleasant outcomes if you were to come to an untimely end and safeguard their future financial security. What a wonderful legacy to leave!
If you’d like further information on protecting your family with life insurance, please get in touch with me at Jregan@infinitysolutions.com. There are inexpensive solutions out there to guarantee your family’s wellbeing, whatever the future has in store for you.
Senior Financial Consultant
When I provide a financial consultation, my approach is to treat my client like a business entity I am in collaboration with to achieve their goals and objectives. Through a combined client/consultant effort I seek to improve their strategies, stressing that actions without positive results are costly and a setback to their financial futures. My priority is always a successful end result.