If you are all about a sound financial plan and do not have a life insurance plan in your name, are you really all about that green? There are plenty of different types of insurance plans that you can review to and find one that best suits you. Here is why it matters so much.
Protecting the People You Love
More than anything else, life insurance allows you to protect the people who rely on you, even when they are not there anymore. The plan provides users with death benefit protection that give beneficiaries money as and when they expire. If anyone relies on income for their livelihood with special needs, this plan makes for the perfect way to be able to protect them. Money may not be able to buy love, but it can ensure the people you love are taken care of.
Funeral Insurance
With a Final Expenses Cover plan, you will be able to choose between a plan that fits your budget. A good financial plan service such as Freedom Insurance will allow you to choose between a plan as low as $4,000 to as much as $15,000. The plan lets you use a single agreement for 8 individuals. You can even convert the Paid Up insurance after 10 years and not pay any more premiums.
It Lowers Your Risk
People never think of insurance as a financial product. Many finance experts believe that going for a life insurance plans adds to the credibility of your portfolio. According to an independent asset allocation research organization named Ibbotson Associates, supplementing the fixed income part of a portfolio can add life insurance to improve overall portfolio performance and cut down on risk.
Is a lot More Affordable than it Seems
It does not matter if you are on the verge of retirement or are just starting your own family, life insurance can be beneficial for you in either case. There are a range of prices and features that suit every situation, age and budget and provide cover for final expenses. Many insurance policies cost a lot less than tickets to a movie. As a step towards providing protection for your family, it does not sound that tough of a choice!
Cash Value
Depending on the life insurance product you go for, you may be in for receiving Cash Value benefits. This is the money that stacks up with time and may land you a valuable asset in the future. This Cash Value can be used to pay bills, boost your retirement income and help you make down payments on your property.
Taxes
An insurance policy has a lot of tax advantages. In many cases, the policy’s death benefit can be paid to the beneficiaries without any federal income tax due on it. The tax benefits can be used to help offset estate taxes as well. If you choose a permanent policy, you have the chance to see that policy grow in time without a heavy tax being levied on it. However, if you access cash value, you will ultimately reduce the insurance benefit.
Sources:
https://www.newyorklife.com/articles/life-insurance-must-have-financial-portfolio/
https://us.axa.com/axa-products/life-insurance/articles/your-financial-plan.html
