Life insurance is considered as one of those long-term investment priorities, yet is often seen as unnecessary protection or expense. It is a contract between an insured individual (aka policyholder) and a life insurance company which contains the payments made by the individual in a period. Should something happen to the policyholder, such as passing away, an equivalent amount of the money paid by the policyholder would go to his beneficiaries.
Here are four reasons why life insurance should be included in your financial plan:
For Family Protection
An average American’s debt sums up to $137,000. Thus, it is important to consider how your family would be able to pay for this when something bad happens to you.
With life insurance, your beneficiaries are given a replacement income. The insurance is immediately provided after the insured’s death and will not be deducted with a tax. A life insurance policy with a death benefit guarantees the financial support of the beneficiaries through an amount of time stated in the contract.
One of the largest personal expenses one can have is on the mortgage. Here, the mortgage company is the life insurance beneficiary. When the policyholder passes away, as long as the policy is still in effect, the remaining balance is paid to the mortgage company. This way, it would help relieve the financial stress on the family and the possibility of a loan default or foreclosure.
A Safety Net for your Business
A key person or key man insurance is a specific type of life insurance policy for the main people involved in the business. The people covered in this policy are those, whose departure would leave the business inoperable, such as business partners and a key employee. With key person insurance, the company is the beneficiary and the expenses to be paid when the founder dies are covered, thereby allowing the company to continue operating and survive.
Starting a New Job
Group-life insurance is employer-sponsored insurance. This employer-sponsored benefit is attractive because it is affordable, discounted, and easy to qualify for. The only issue is that it doesn’t cover everything you need.
It is essential to invest in life insurance. Should something happen to you, you can assure the financial security of your family, property, and business.
At Roper Insurance Services, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays and we're here to help you out. Learn more about our products and services by calling our agency at (828) 697-6709. You can also request a free quote by CLICKING HERE.