Everyone knows that life insurance provides protection for the dependents of the policyholder. Because it replaces an income, life insurance is crucial for families with small children or other dependents. But there are a number of other benefits to take into consideration, as well. Life insurance can be a wise investment for several reasons.
Life Insurance Protection
Life insurance provides a safety net for a family when one of its providers passes away. The funds paid out can be used to pay for a funeral or memorial service honoring the lost loved one. Life insurance funds can also be used to pay so-called "death" taxes at the state and federal levels.
The most commonly known benefit, of course, is income replacement. For individuals with dependents, life insurance is a responsible and time-honored way of looking after them. Life insurance protection for minor children, spouses, and others is a key consideration in choosing a policy.
Insurance also allows individuals to help create stability for their heirs. Life insurance creates an inheritance for people who may have no other significant assets to pass on. Alternatively, by naming a non-profit as a beneficiary, people can make a big impact on the cause of their choice.
Lastly, some life insurance policies can be used to amass savings. By purchasing a cash-value building policy, people are able to make financial plans for the long-term. It is possible to make withdrawals from such a policy, or to borrow against it.
There are also tax advantages to this type of policy. Interest on the policy is tax-deferred, and if the policy is paid out as a death benefit, the interest remains tax exempt.
Choosing a Life Insurance Policy
By protecting your loved ones and your future with life insurance, you can achieve real peace of mind. Life insurance is a cornerstone of financial planning, and finding a policy that meets your needs is important.
At Fox Insurance Ageny, we have years of experience with home, auto, and life insurance products. And as an independent agency, we can provide you with a life insurance quote from more than one of the nationally-known, highly-regarded insurance companies we do business with.
We proudly serve all of Oregon and Washington State. We would love to help you find the right policy to fit your needs. Contact us today!
The information in this article was obtained from various sources and is not all inclusive regarding the subject matter. This content is offered for educational purposes only and does not represent contractual agreements, nor is it intended to replace manuals or instructions provided by the manufacturer or the advice of a qualified professional. The definitions, terms and coverage in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.