Most Americans agree that it is a good idea to get life insurance … but only 54% actually have life insurance. Of the 54%, 27% have a group policy – usually through their employers – which in most cases does not provide sufficient coverage.
The Good News: It's surprisingly affordable to give your family members the financial protection they need. And it offers a number of benefits, including some that many do not know.
- You can support your family. Did you know that four out of ten households without life insurance would have difficulty paying for living expenses if their primary household income earner passed away? Having adequate life insurance gives you and your loved ones peace of mind when you know that your family has the financial means to pay for daily living expenses and future expenses, such as college education for your children.
- Your family can pay for final expenses. Even if your children are independent adults, the cost of funerals and burials can be a financial difficulty. The average funeral and burial costs $ 7,640 in the United States.
- Life insurance benefits are tax-free. Life insurance payments do not count as taxable income, so your family gets the money they need without tax burden.
- You can protect your business partners. If you are an entrepreneur or co-owner, you can get a specific life insurance called key person insurance . With this insurance, your company will become the beneficiary in the event of your death, giving the company the necessary funds to continue without you. (Read more about the importance of life insurance for entrepreneurs in our blog, Entrepreneurs: Here are four reasons to get life insurance.)
- You do not leave your family in debt. Your estate covers many of your outstanding debts so that your surviving family members are not burdened by them. But there are exceptions. For example, if you have a joint credit card account with your spouse, he or she is responsible for the balance after your death. In the same way, everyone who has taken out a loan with you – as a home loan – will be responsible for paying the remaining balance.
- You can get help to pay the costs of a terminal or chronic illness. You can add an Accelerated Death Benefit Driver to your life insurance policy, allowing you to receive some of your police death benefits while you are still alive. You can use this money to pay for hospice care expenses. Frankenmuth Insurance also offers a rider for chronic illness on whole life policies with face amounts more than $ 100,000. This rider helps policyholders who, due to a chronic medical condition, are unable to perform at least two daily activities without significant assistance.
Ready to get started? Use our life insurance calculator to estimate how much life insurance you need, or talk to one of our local, independent agents today.