Let’s begin by understanding what life insurance entails. Essentially, life insurance is a contractual agreement between an individual (referred to as the policyholder) and an insurance company. Through this agreement, the policyholder commits to making regular premium payments to maintain the policy. In return, upon the policyholder’s passing, the insurance company disburses a lump sum (referred to as the death benefit) to the chosen beneficiaries.
The primary aim of life insurance is to offer financial assistance to family members who rely on the deceased individual for financial support.
Here’s Why You Need Life Insurance
Life insurance is often overlooked, but should be an important consideration for everyone, no matter their age, income, or family structure.
Here are some key reasons to get life insurance:
- Financial protection for your dependents: Life insurance can provide financial security for dependents such as a spouse, children, or other family members. It can help replace lost income and cover living expenses, mortgage/rent payments, and educational costs.
- Debt repayment: Outstanding debts shouldn’t be imposed on the surviving family members, but these must be repaid regardless. Life insurance can cover the repayment of a mortgage, car loan, student loan, credit card balance, or other consumer debt.
- Funeral expenses: Funeral and burial costs can be significant. Life insurance provides coverage for these costs, removing the large financial burden that families would otherwise face during one of their most difficult moments.
- Estate planning: Life insurance can cover the taxes and other expenses related to an estate, so that assets can be transferred to heirs without the need to sell or liquidate property or other valuable assets.
- Business continuity: For those who own a business, life insurance can help ensure that the business will remain in operation following the death of a key individual. It can be used to repay business debts, fund business purchase agreements, and make the transition process go smoother. In addition to family members benefiting from life insurance, employees and others connected to a business deserve some protection.
- Charitable giving: A charitable organization can be named as a beneficiary, ensuring that proceeds can be directed toward a cause that the covered individual supports following their death.
- Supplemental retirement income: Some types of life insurance policies can accumulate a cash value over time, allowing policyholders to use this as supplemental retirement income later in life.
Life Insurance Gives You Peace of Mind
Overall, life insurance provides the emotional benefit of peace of mind for both the insured individual and his or her family members. It removes the uncertainty about how loved ones will be financially supported after one’s untimely death- a time when finances should be the least of their worries.
We Can Help
Here at LEB Insurance Group, our certified life insurance agents can assess your unique needs and find the right life insurance policy for you. No matter your circumstances, getting set up with a life insurance policy doesn’t need to remain an item on your to-do list. Call us at 920-214-5320 or visit our website to get started.
