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Beneficiaries Need Life Insurance

Insurance is designed to protect a person and the family from disasters and financial burdens. There are many kinds of insurance of which, the basic and most important is considered to be life insurance. It provides for your beneficiaries after your death.

 

Since there are certain financial commitments you need to meet throughout life and do contribute in some way to the family income, you need to provide something even in death to secure the home, help the family meet expenses for a while, protect beneficiaries parents, or secure the children or spouse.

 

Financial obligations could include funeral expenses, unsettled medical bills, mortgages, business commitments, meeting the college expenses of the children, and so on.

 

How much insurance a person needs would vary, depending on lifestyle, financial needs and sources of income, debts, and the number of beneficiaries? An insurance adviser or agent would recommend that you take insurance that amounts to five to ten times your annual income.

 

It is best to sit down with an expert and go through the reasons why you should consider insurance and what kind of insurance planning would benefit you.

 

As an important part of your financial plan life insurance provides peace of mind for your beneficiaries in any uncertainty that life brings.

life insurance beneficiaries

life insurance beneficiaries

1. Life insurance correctly planned will on premature death provide funds to deal with monies due, mortgages, and living expenses. It offers protection to the beneficiaries you leave behind and serves as a cash resource.

 

2. It secures your hard earned estate on death by providing tax free cash which can be utilized to pay estate and death taxes and to tide over business and personal expenses.

 

3. Life insurance can have a savings or pension component that provides for you during retirement.

 

4. Some policies have riders like coverage of critical illness or term insurance for the children or spouse. There are certain rules regarding eligibility for riders which you will need to determine clearly.

 

5. Having a valid insurance policy is considered as financial assets which improves your credit rating when you need health insurance or a home loan or business loan.

 

6. In case of bankruptcy, the cash value as well as death benefits of an insurance policy is exempt from creditors.

 

7. Life insurance can be planned such that it will cover even your funeral expenses.

 

8. Term life insurance has double benefits, it protects and you can get your money back during strategic points in your life.

 

9. Life insurance protects your business from financial loss or any liabilities in case a business partner dies.

 

10. Life insurance can contribute towards maintaining a beneficiaries life style when one contributing partner suddenly dies.

 

Life insurance is vital to good financial planning and security but you would need to assess your personal risk and long term commitments.

Contact a life insurance advisor today to answer the questions that you need answers to today!

Millennial Life Insurance

(804) 551-9526
3600 West Broad St
Richmond, VA 23230