Why People Really Buy Life Insurance
While we may not like to think about it, planning for the financial protection of loved ones is essential in making sure that they are well taken care of in the future – regardless of what that future may hold.
Oftentimes when a breadwinner is lost, their survivors can endure great financial hardship – including a drastic change in lifestyle – if there is not a proper plan in place. The purchase of life insurance can help you to keep the promise of protection and financial security to those you love.
If you are thinking about buying Brandon FL life insurance or Tampa life insurance coverage, call us to discuss your options. You can also bundle your policy with Tampa FL home insurance.
We understand that picking the right life insurance coverage can be confusing! This is why our agents will help you select the best Tampa life insurance or Brandon FL life insurance for your situation. Read the important information on this page, then call our office to schedule a meeting. During your appointment, you can ask questions about life insurance and about bundling your new policy with other types of insurance, such as Tampa FL home insurance. This can be a great way to save money on your premiums. If you don't have life insurance protection, you need to become a policyholder as soon as possible. Don't hesitate to call one of our professionals soon!
Top 10 Reasons to Buy Life Insurance
There are a variety of reasons why people purchase life insurance coverage. Here are some of the primary factors:
Provide for their Loved Ones
In many instances, the key reason that people obtain life insurance is to provide for their family should they no longer be there to contribute. The proceeds from a life insurance policy can be used for providing income in paying the living expenses of a surviving spouse and / or children so that they don't have to drastically change their lifestyle, especially during an already difficult time.
Pay Off Debt
Life insurance benefits are also oftentimes purchased with the purpose of paying off debt. With these proceeds, loved ones can pay off expenses such as a mortgage or large credit card obligations that may otherwise become a financial hardship.
Pay Final Expenses
Today, the average cost of a funeral can be upwards of $10,000. Many families would have a difficult time in quickly coming up with such a large sum in order to pay final expenses that are oftentimes due immediately. By using the proceeds provided by a life insurance policy, your loved ones will have access to the cash that they need quickly.
Fund a Trust
The purchase of life insurance may also be used in a number of wealth accumulating strategies that involve trusts. The policy proceeds inside of a trust could go towards benefitting loved ones in a number of different ways, including the paying of living expenses for a surviving spouse or providing future funds for a special needs child.
Reduce Estate Taxes
Estate taxes can take a substantial portion of one's overall assets. This is why life insurance is oftentimes purchased for helping to pay this potentially large sum. There are, however, specific strategies that must be followed, otherwise the amount of the life insurance policy proceeds could be added to the total amount of the estate and cause an even higher amount of tax that to be due.
Protect a Business
Life insurance policies are often purchased by business owners for the purpose of providing funding to pay the business debts and keep the company running upon the loss of the owner. Strategies using life insurance can also be used that can go towards purchasing a deceased owner's portion of the company by the remaining owners or partners.
Donate to a Charity
Many people have a favorite charity and would like to donate funds to such an organization. Life insurance provides a great vehicle with which to do so. In fact, many donors can actually make a much larger donation by using life insurance proceeds than would otherwise be feasible with a direct contribution in life.
Use the Living Benefits
Today, many life insurance policies also offer "living benefits" such as allowing the use of the proceeds for long-term care expenses or high medical costs. In doing so, the death benefit amount will be reduced. However, in many cases, it is more beneficial for a policy holder to pay off large debts in this way or to have use of the funds for other needs during life.
Accumulate Additional Savings
Most permanent types of life insurance policies offer a cash value component where the policy holder can build up a substantial amount of savings. These funds can either be borrowed or withdrawn in order to pay off debts, take a vacation, or for any other reason that the policy holder sees fit.
Keep Funds Safe From Creditors
The funds that are held within the cash value portion of a life insurance policy can also be considered as a type of safety net for the policy holder. This is because in the case of bankruptcy, the cash value and the death benefits of a life insurance policy are exempt from creditors.
Do You Need Life Insurance?
In determining whether or not you need life insurance, as well as what type of policy and how much coverage you may need, it is best to speak with an insurance professional. At Romero Insurance and Financial Services, we are independent agents. This means that we are not tied to one particular life insurance company or product and we can provide you with information on the type of policy that will truly best fit your specific needs.
For additional information or a life insurance policy quote, contact us today.
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