As Benjamin Franklin famously noted, “Nothing in life is certain except death and taxes.” No one relishes dealing with the latter nor confronting the former. Still, a prudent financial plan that utilizes proper life insurance coverage does both. Here are a few reasons why:
- Life insurance helps your heirs – No matter the carrier or the amount of coverage you have, life insurance will provide a source of funds to your descendants to pay bills or settle your debts. Check with your insurance broker to confirm the pertinent facts – carrier name, policy number, etc. – and relay this information to the beneficiaries ahead of time so that they do not need to be searching for it in their time of grief.
- Life insurance avoids death taxes – In general, the death benefit proceeds from a life insurance policy are non-taxable at the state and Federal level. There are some exceptions – most notably if the policy was transferred to you. Again, check with your insurance agent to clarify any potential issues and the ways to resolve them.
- Life insurance is an investment – While term life insurance is solely a hedge for your heirs against the unthinkable, whole life insurance can actually play a significant role in your own financial future. It is an investment that not only protects your beneficiaries should you die but will also pay actual dividends to you if premiums are started at a relatively young age. Consult an insurance expert for options and more details.
The thought of obtaining life insurance may seem somewhat unpalatable but it is a tried and true method for safeguarding the future – both your family’s and your own. Without a doubt, it should be part of your financial plan. For more detailed information on it, please contact the experts at Lewis & Palmer Benefits. We can be found online at LPBenefits.com or reached directly at 954-308-7204.