Do I Need Life Insurance? The Benefits Explained
Life insurance is an important means of protecting your family in the event of your unforeseen death. There are many life insurance types available, from whole life to serious illness cover and term life. Unfortunately, almost half of American adults still do not have any form of life insurance.
Many people imagine that life insurance is too expensive. However, the reality is that it is far more affordable than you think. We will look closer at how affordable life insurance is; while highlighting three life insurance benefits for you and your family.
Cover Your Dependent’s Living Costs
Perhaps the primary benefit of life insurance for the policyholder is peace of mind. Knowing that your dependents will be financially secure in the event of your unforeseen death is hugely important. Life insurance payouts can be used to pay for your children’s education fees and everyday living expenses, a peace of mind that is priceless.
Pay for Final Expenses
The reality is that your ‘final expenses’ can easily run into several thousands of dollars. Studies show that the average cost of a funeral and burial in the United States is more than $7,500. Without a life insurance policy, families cannot pay for their funeral arrangements without having to use credit or their own savings.
Payouts are Tax-Free
Generally, the beneficiary of a life insurance policy does not have to pay tax on their payout. While there are a few exceptions to this rule, typically, your dependents will receive the full amount you are insured for. This again offers peace of mind that they will be fully covered in the event of your death.
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More Affordable Than You Think
As we highlighted in the introduction, life insurance is far more affordable than you may realize. If you are one of the nearly 50% of adult Americans without life insurance, it’s worth considering the true costs.
Studies have highlighted that most Millennials think that life insurance is significantly more expensive than it actually is. The annual cost of a $250,000 level-term life insurance policy for a 30-year-old in good health is around $160. However, more than half of Millennials think that annual costs would be more than $1,000.
So, while you might not realize it, life insurance is far more affordable than you think. As we have highlighted above, the benefits for you and your dependents are worth it.
Consider Life Insurance Benefits for Your Family Today
If you have been thinking about taking out life insurance but haven’t been convinced, then the benefits listed above are worth keeping in mind. Life insurance is affordable and helps your loved ones and dependents have financial stability in the event of your death.
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