Why you should consider life insurance now
As one year ends and a new one begins, many people look back at their financial decisions and decide to make better use of their money going forward. Not only does that often involve things like budgeting, but it also can extend into areas like re-evaluating insurance choices.
For example, you might come to the decision to spend money now on something like life insurance in order to set you and your loved ones up for the future. Perhaps you'll find something you can cut out of your budget in 2023 and instead put that money toward life insurance premiums.
If you're in the market for life insurance - or simply want to supplement your existing coverage - then start by getting a free price quote here so you know exactly what to expect.
Why you should consider life insurance now
Why look into life insurance in the first place? Life insurance offers a variety of benefits, some of which are timelier than others. Here are some top reasons to consider life insurance now:
It can cover your beneficiaries in the event of your death
One of the main reasons people often get life insurance is to financially protect their beneficiaries, like their spouse and/or children. While everyone eventually passes away, term life insurance in particular can help cover your beneficiaries in the event of an early death.
For example, if you're the primary earner in your household, you might be worried about how your spouse would pay the mortgage and other essentials if you passed away in, say, the next 10 or 20 years. In that case, a term life insurance policy could provide a payout to your spouse if you pass away during that period.
A whole life insurance policy can also provide a payout whenever you ultimately pass away, though premiums tend to be higher than for term life insurance policies.
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It can be used for cash while alive
In some cases, life insurance can be used while you're still alive, rather than just being something that's used by your beneficiaries after your death.
For example, with whole life insurance, your policy can build a cash value, not just a death benefit. Depending on the terms of the policy, during your lifetime you may be able to cash out at least some of that cash value. You also might be able to borrow against it or use it to pay premiums, for instance.
Be sure to look into the specifics of any policy you're considering, as there can be nuances to consider, like if taking out the cash value of your insurance policy means reducing your death benefit or ending your policy fully.
While some people prefer to have lower insurance premiums for policies without a cash value component — instead putting that money into a brokerage account, for example — others like the sense of security that can come from having that asset build value over time.
Also, you may be able to access some cash from your policy during your lifetime with the help of riders, like a chronic illness rider. In the event you suffer from a chronic illness, being able to access some of your benefit during your lifetime can make that period easier to navigate.
Can ease the burden of end-of-life expenses
Another reason to consider life insurance is if you want to make end-of-life expenses less stressful for you and your loved ones.
For example, burial insurance or final expense insurance, which are forms of whole life insurance, can be used to cover costs like funeral expenses.
Some people might use a more traditional life insurance policy to leave their loved ones with a larger payout to use as they see fit. But others prefer to have this more targeted type of policy, especially if you choose an option that pays out directly to a funeral director, for instance.
Policies like these might still give flexibility to beneficiaries, who don't necessarily have to spend the money on things like a funeral, even if that's what the policy is primarily marketed for. But it could give you and them peace of mind knowing that enough money is available for final arrangements.
Also, if you're facing difficult choices as life comes to an end, such as battling a critical illness, you and your family might prefer to receive some money while you're still alive to make that period more comfortable. So, things like a critical illness rider could enable you to access some of your death benefits during your lifetime.
The bottom line
As these examples show, buying life insurance can provide many different benefits for you and your beneficiaries. However, there are many nuances to consider, such as the type of life insurance you might want to purchase, the amount of coverage, customizations via riders, etc.
Take time to review your financial situation and see how different types of life insurance policies fit in. In doing so, you might be able to find one that puts you on a more secure and less stressful financial path.
You can start by reviewing some top life insurance providers here or use the table below now.
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