Welcome To Life Insurance Experts
Buying a life insurance policy is the best thing that you can do to secure the future of your loved ones. A sudden loss of income after the unexpected death of the prime earner can leave the family in financial turmoil. Nobody would want their loved-ones to fret over monetary issues when they are gone, and this is where term and whole life insurance comes in.
Life insurance acts as a safety nett in such a situation. It will take care of your living expenses as well as contribute to any standing bills or loans thet you may leave behind.
Who Requires Life Insurance?
The true value of life insurance is realized after the insured's death. A person's sudden demise can have a serious impact on their family, leaving them financially vulnerable. In such times, the proceeds received in the form of death benefit from term life and universal policies can be used as necessary to stabilize the family income and look after those that matter.
Life Insurance has become a necessity these days. If you have young children and wish to secure your kids' future, you should buy a life insurance policy. It will take care of their college education in case you are not around to pay for it. If your child is disabled, a good term life insurance policy will look after the medical expenses for the child, should you not be able to do so. A life insurance plan caters to many such situations.
It is not the case that only people from middle-income groups can afford a life insurance policy. Term life plans are very affordable and are considered a worthy investment, particularly if you have long term commitments. If you and your spouse are earning well and have bought a house, you'll probably be required to cover mortgage repayments for a number of years. Should one of you die unexpectedly, who will pay the mortgage off?
With a term life insurance policy, things will be made easier for your partner since the mortgage loan can be paid off with the death benefit the beneficiary will receive. Many people secure term life plans for the length of their mortage repayment term for this reason.
It is advisable to purchase a life policy that is worth at least five times your income. This way there will be enough death benefit to cover expenses and those you leave behind will not have to face any kind of financial hurdles when you are gone.
It is possible that your requirements for buying life insurance plans might change with time. For instance, your kids are through with college and your mortgage is paid off well in time. The reasons that you bought life insurance coverage in the first place may not be valid anymore. Therefore, it is important to plan as to why you need a life policy and for how long.
How much WILL IT COST?Do you know how much life insurance you require? The first thing to consider is how much investment your family will require after your death to take care of all expenses…
Where do i buy it?Once you have made up your mind about buying life insurance, you must be wondering where and how to buy it. It’s an important decision and you must look at all avenues before you…
WhO needs it?If you have dependents that are likely to experience financial hardship after your death, you should buy life insurance. Life insurance pays death benefit to your family after your ...
If you have property in your name which is likely to go to your heirs as inheritance, you will probably be needing a life insurance policy to cover estate tax. As per the present law, paying off estate tax requires lot of money, so your insurance coverage should be enough to accommodate these taxes.
Term Life and Whole Life Insurance
Term Life Insurance, as the name suggests, is for a specific term. You are insured as long as you keep paying your insurance premiums on time. Once the term expires, you have to renew your policy if you want the avail the benefits. Whole life insurance, on the other hand, is permanent but the premiums are very high compared to Term Life Insurance. If you have enough funds for investing in a whole life insurance plan, you may wish to consider it as an option.
One benefit of buying a whole life insurance policy is that the benefit received would be tax-deferred. However, many opt to buy a term life insurance plan because it is more reasonably priced as compared to whole life. You can invest any remaining money somewhere else, such as in bonds, property, etc.
If you are planning to purchase larger insurance coverage, talking to your lawyer would prove to be of great help. They can create an “irrevocable life insurance trust” for you. This will ensure that the amount of insurance coverage is not counted as part of your estate tax. Your family will then get the insurance payment devoid of any tax.
8 Benefits of Life Insurance
- Prepare for the Inevitable
- Safeguard your Income
- Borrow Against your Policy
- Protect your Assets
- Plans are Tax Deductible
- Accumulate Wealth
- Tailored to your Needs
- Achieve Peace of Mind