Life insurance protects your loved ones financially if you die. If you die during the policy period, a lump sum is paid that can be used to cover outstanding debts, medical expenses, funeral expenses, etc.
Some policies also have additional benefits. It can also be a financial safety net to help you out if you need it later.
3 amazing things to know about life insurance
Here are three things you should know when buying securities.
1. Benefits are tax-free
All life insurance policies come with a death benefit. your beneficiaries You will receive it if you die. This in itself might help the loved ones you left behind, but what better? It’s usually tax-free.
The Internal Revenue Service does not require beneficiaries to report life insurance income as gross income. This will help your loved ones avoid costly tax increases in the year you pass.
Keep in mind: there is some exceptions to this rule. If an insurance policy is transferred to someone else, or if that person receives interest on it, that person may be obligated to pay taxes. Please consult your tax advisor for guidance specific to your situation.
2. Some policies allow you to withdraw cash
Some types of life insurance — like whole life insurance When universal life insurance – Have cash value component, you can make withdrawals whenever you want. This is useful when you have unexpected expenses that you cannot cover, such as medical bills, unexpected home repairs, or car accidents.
Many policies also allow loans against them, so you may have access to even more money in a pinch. You may not even have to repay the loan (although choosing this method reduces the beneficiary’s death benefit).
this is why you should Talk to a Life Insurance Expert NowThey can answer any questions you may have and help initiate the policy that works best for you.
3. Medical examination is not always necessary
Despite popular belief, not all life insurance is necessary. Medical checkup. Policy type Those that may not require an exam include simple issuance insurance and guaranteed issuance insurance. Group life insurance offered through your employer may also not require it.
In some cases, life insurers may only require a brief questionnaire rather than a full professional evaluation.
Both of these options are useful if you want a quick and hassle-free policy purchase process, or if you have pre-existing health conditions, work in a hazardous occupation, or are a smoker. traditional policy.
4. You might already have one
Did you know that you may already have life insurance? Many employers actually offer basic life insurance policies as a benefit to their employees (in addition to medical, dental and vision plans). The amount of compensation your employer offers is relative (often 1-2 times the employee’s annual salary) and may not be enough (you may have to make up for it yourself). Still, life insurance protection is better than nothing.
If you are unsure if your employer offers life insurance or how much it is, ask your Human Resources (HR) department. It helps you decide if your coverage is adequate or if you personally need more coverage. Life insurance experts can help We will guide you to the best plan.
Another amazing fact…
Life insurance comes in many different types. variable insurance, term insurance When whole life insurance, each with its own drawbacks and advantages. Some policies may allow flexibility in monthly payments, death benefits, or both. Once your cash value account is large enough, you may be able to use it to fully cover your insurance premiums.
If any of these (or any of the benefits listed above) appear to be of benefit to you, talk to your insurance agent or financial advisor. They can help you decide which type of life insurance is best for your needs and compare insurance companies.
Use the table below to review your options, or Talk to your insurance agent now to get started.