There are so many different types of life insurance that you might be more confused by the concept than familiar with the benefits. It's ok, it's understandable. Here is what you need to know.
Life insurance is a financial instrument just like any other financial product you might have purchased and heard of over the years. It serves a purpose, but not just the one you're probably most familiar with, the death benefit.
Unfortunately, we've all lost someone close to us - it's just one of those undeniable facts of life. It is emotional, painful, shocking, surreal, and very similar to a scar on our body - it may be come less painful, but never leaves us. Death of a loved one also leaves a void that can crush our hearts, leave us with many questions, and firmly place reminders of their absence.
One of those reminders of their absence may be a financial burden. Perhaps the person you loved helped you pay utility bills, mortgages, rent, car payments, groceries, education, raise your children, save for retirement, etc. I think you get the point. Even though you'll feel their absence with every passing day, it may seem like the rest of the world keeps moving and sometimes it'll feel like it's coming right for you.
Life Insurance can help reduce that financial burden and allow you to grieve the most important pain - the personal and emotional loss of a loved one.
Reduce the Erosion of Your Estate
You've worked very hard to accumulate your assets over your lifetime. You've paid your dues, saved what you could, and built a nice nest-egg. However, depending on what state you reside, there may be "death taxes" in the form of state inheritance taxes or state estate taxes and in some rare cases - both.
These taxes may reduce what you are able to leave to your children and grandchildren. Perhaps you're leaving pieces of real estate that have mortgages attached to them that your loved ones may not be able to afford if you're no longer here. Life insurance may be an affordable way to provide your loved ones with the funds to pay those forms of erosion to your total estate value.
Life insurance should be purchased from a firm that understands the impact of those funds. It should be purchased in a way that will not be subject to those estate and inheritance taxes. Make sure you work with a team that knows the ins and outs of how that money may or may not be taxed.
Some types of life insurance policies accumulate cash within the policy that you can access while you're alive. There are numerous benefits to purchasing these types of contracts. These policies are often times called permanent policies - be careful as some are more permanent than others. Work with a firm that can guide you through the purchase and provide education on the benefits of each policy.
The living benefit can be accessed to supplement retirement liquidity, pay for long-term care expenses, provide asset protection in many cases, and provide an alternative to the risks of the volatility of the stock market.
What if we could turn that reminder of a loved one passing and make it a warm reminder of how much they loved you, how much they wanted you to succeed in life, and how much they wanted you to have the money to pay for a child's education, wedding, first home, help you save for retirement, and pursue all those things you love.
Imagine your child goes through their higher education with no debt and on graduation day their able to thank that special someone for making a decision so many years prior. Life insurance helps keep that person in the conversation years after they pass, gives them a presence at a dinner table at a holiday or family gathering.
You don't have to be rich or famous to leave a legacy for your family. You only have to make a decision to call or e-mail an agent that will help you figure out what's best for you and your family.
Life insurance can serve many purposes for all types of different objectives and working with a firm that can properly explain how each policy works is essential to you purchasing the correct financial instrument for you and your family.
For more information, please feel free to call us at (718) 704-0900 and speak to our professionals that are ready to assist you. The call is free, the information is free, but the knowledge can be worth all the money in the world.