The idea of losing a loved one is difficult to handle but what happens when they are a main contributor to the family? At G2 Insurances Services, we think it’s important to understand how a life insurance policy can benefit your family after a tragic event. After all, you have worked hard to provide a comfortable living situation for your family. So ask yourself:
“Is my family able to continue their standard of living after an unexpected death?”
While this is a difficult topic to discuss, in light of Life Insurance Awareness Month, we decided to write this article to provide information on the importance of life insurance.
Here are a few ways a life insurance policy can benefit your family:
First and foremost, a life insurance policy can reduce the amount of stress that comes with losing a loved one. Finances often can be the main contributor to this stress, especially if you are not the breadwinner in the family.
A life insurance policy provides a secure way for your family to afford things like mortgage payments, living needs, and childcare.
Give your family peace of mind by having a policy in place and ensure that they can continue their standard of living.
Purchasing a life insurance policy is going to impact the future of all of your loved ones. If you have children that are thinking of going to college or pursuing higher education than you should consider widening your policy. Allotting for these future expenses will ensure that your children will have the necessary funds needed to pursue a degree.
Additionally, some policies will accrue savings throughout the time you are living which can often be withdrawn to provide much needed cash. It is the perfect way to ensure that your kids can achieve a better future.
Cash value is a component of a permanent life insurance policy that accumulates over time. Life insurance policies do not always have to be utilized in the time of death. This aspect makes it a good savings vehicle for those who are just starting a family. Cash value will build up over time and act as a borrowing method to put up against loans that can go towards a larger payment such as:
- House Payment/ Down payment
- College Tuition
- Business Startup
Provides a Succession Plan
If you own a business and have a successor identified than a life insurance plan will assist you in passing down the business. Succession plans can be intimidating and people often procrastinate the idea of passing down their business. As we mentioned, a life insurance policy revolves around planning for the future so it will innately include a plan for passing along your business. You will have full control of who takes the reins and the path of the business, which will help alleviate some of the stress.
Some taxes do apply during the event a successor takes over a business. These costs can become a burden so be sure to discuss it with your agent so you can be sure you are covered.
The last aspect that is important to remember is the expense involved with a funeral. An average service can cost thousands of dollars and your family may not have enough to pay. A life insurance policy will allow your family to hold your service and memorial without eliminating their savings.
Overall, life insurance is the best way for you to make sure your family has the means to continue their standard of living in your absence. We, as humans, hate thinking about such dire situations and that can lead to procrastination.
Where would your family be left if you didn’t have a life insurance policy?
While this question is strong, it is an important concept to keep in mind when you are planning for the future. So what are you waiting for? Contact us today to get the coverage your family deserves. At G2 Insurance Services, our team is waiting to guide you down the best path to protect your future. We offer personal, commercial, life, and health insurance policies and always do our best to get you the best customer care possible.
Want to know more about G2 Insurance Services? Click here to connect with us so we can determine the most beneficial route to your coverage.