Many people think that getting life insurance is an unnecessary expense or a topic best left undiscussed. The reality is that life insurance is not about you, but about the people you love most in the world. In the United States, it represents the difference between your family's financial stability and extreme uncertainty in the face of an unexpected event.
How does life insurance protect your loved ones?
The primary death benefit in life insurance provides fast, federal income-tax-free cash so your family can:
- Pay off the mortgage balance on the family home, avoiding having to relocate.
- Cover daily expenses, food, utilities, and health insurance.
- Guarantee college funds for your children.
- Settle personal or business debts they would otherwise inherit.
'Living Benefits': Protection you can use yourself
Modern life insurance policies do not only pay out at death. Many permanent and indexed policies include living benefits. This means that if you are diagnosed with a serious, chronic, or terminal illness (such as cancer, stroke, or kidney failure), the insurance company allows you to withdraw a substantial portion of your death benefit to pay for quality treatments, pay off debt, or maintain your monthly income while you recover.
Cash value accumulation and savings
Permanent policies accumulate 'cash value' that grows on a tax-deferred basis. Over the years, this money becomes a reserve that you can access through low-cost loans to make a down payment on a home, finance college education, or supplement your retirement income.
When is the best time to buy?
The best time is today. Life insurance rates are calculated based on your age and health status. The younger and healthier you are when you apply, the more affordable and accessible the monthly premium of your lifetime policy will be.