5 Benefits of
Why Life Insurance?
As bankers, one of the most difficult things we see are when sudden, unexpected deaths create financial stress on families already grieving from loss. Using financial tools, such as life insurance, can help alleviate this stress. While there are many reasons life insurance is beneficial, here's a handful we believe are important for anyone to consider:
Protect a loved one. If you have someone who depends on you financially, such as a spouse, disabled family member, children or grandchildren living with you, they may not be able to maintain an adequate lifestyle without your contribution. Life Insurance could also create a financial cushion that helps give surviving friends and family more time to make any necessary lifestyle adjustments, such as downsizing homes, finding day care or nursing home care, getting a job, finishing school or moving to a new location.
Leave a legacy. Life insurance could guarantee a certain amount for your children, provide for your grandchildren or allow you make a significant donation to your favorite charity.
Cover remaining expenses. The average funeral can cost upwards of $10,000. Life insurance can provide full coverage of your funeral expenses so that you aren’t a burden for anyone after you’re gone as well as cover any remaining debt, outstanding medical bills or fees associated with settling an estate. If you've co-signed for your child's family home and/or student loans, life insurance can provide the money necessary to pay any remaining debt that may be transferred to you if the unexpected happens.
Compensate for transferring wealth. The more net worth you’ve accumulated, the more your beneficiary may have to pay in inheritance taxes, property taxes and legal fees. Additional life insurance can help cover these costs for your recipients so your gifts remain gifts and not an additional financial burden. Life insurance could also provide quicker income if your estate is complicated and gets tied up in probate or legal challenges.
Provide balance. If you have a family business or farm, it can be complicated to pass it on to the next generation. Assets may be tied up in running the business, and family squabbles could lead to liquidating your assets. It’s also hard to make it fair for all your children, especially those not involved in the operations. By leaving the proceeds from a life insurance policy to some and the business to others, some of your issues could be solved and bring you peace of mind.
You can calculate the proper coverage for you, check out rates from multiple providers, get expert advice and apply for term life insurance on our new Digital Insurance Platform.