If you have been keeping up with the Naples Life Insurance & Annuity Advisors’ blog, you will have been reading a lot about life insurance. Why? Life insurance is incredibly important for anyone no matter how old you are or what your financial situation looks like. Life insurance is a tool that provides ample opportunities and because there are several types, this type of investment can easily fit into your financial plan in a variety of ways with some term life insurance plans growing with you as your needs change. Today, we want to cover some of the basic needs that life insurance can meet.
Thinking of one’s own death is an uncomfortable thought and discussing it with your loved ones can make them uncomfortable, too. However, it is simply something that must be done and, really, it is one the most loving things you can do. A life insurance policy can pay for all the funeral expenses that accumulate after you are gone. Even if you are cremated and buried in a shoe box, there will be expenses. Having to pay for a funeral and other costs when you pass away can put extra strain on your family, who is already grieving your loss.
A term life insurance policy can be useful for paying for possible expenses that you will incur as your child grows up: accidents that send them to the emergency room, stays in the hospital, cost of medical or dental procedures, and other expenses. Though we hope that our child will grow up healthy and happy, it is always better to prepare for the worst, so that if the worst does actually come to fruition, your child can get the care and treatment they need.
We all have been there when the car breaks down and is in need of thousands of dollars of repair, a family member unexpectedly takes a stay at the hospital or needs unexpected surgery. Trying to pay for an unexpected large expense, plus paying for all the other monthly expenses that you have such as rent or a mortgage, car payment, food expenses, and others can be difficult. If you find yourself in such a scenario and you have invested in life insurance, in some cases, you can borrow against the cash value of your life insurance policy and cover those large expenses.
Paying For Debt
If you are like the majority of Americans, you most likely have some kind of debt whether it be a mortgage, credit card, school loans, or even medical bills. Unfortunately, when you die, your debt doesn’t just disappear. Your debt is immediately the responsibility of your beneficiary. In the situation of paying off debt, life insurance can function in one of two ways. It can pay off whatever debt is left when you die or it can function as a means for paying off debt when you enter retirement. A term life insurance policy can be a great investment if you are looking for a means to pay off your mortgage during retirement and a whole life insurance policy functions well for paying off any debt after your die. However, it is always best to consult your local Naples financial advisor to see what would be the best investment for you.
Leaving a Legacy
If you have watched any murder mystery movies or any crime shows such as Murder, She Wrote, you have probably seen a story about murder that was carried out for the purpose of inheriting the death benefit prematurely or the “deceased” collecting their own death benefit. Aside from the drama that we see in the movies, an insurance policy can be a profitable way to provide for your beneficiaries after you pass away or to donate to an important cause or institution. Many insurance policies have a death benefit that will be inherited by the beneficiary, but not all policies are alike; it is best to make sure that the life insurance policy that you have has that benefit and that if you have borrowed against your policy, you have replaced the borrowed money.
These are a few of the benefits that life insurance has to offer. Most of all, life insurance will give you peace of mind knowing that you have the coverage that you need and those that you love and provide for will be taken care when you pass away. If you are wondering if you have the coverage that you need or are wanting to invest in life insurance, contact Naples Life Insurance and Annuity Advisors. We have over thirty years of experience advising our clients, helping them invest in the most advantageous investments for them. Learn more about us and how we can help you prepare for the future in Naples on our website!