How to Choose the Right Life Insurance
No matter what your age is, you need life insurance. Married couples, single professionals, children, newborns, stay-at-home moms, retirees, small business owners, and parents of grown children can benefit from life insurance coverage. You may be physically fit right now and feeling well however no one is sure what can happen next.
It is important to be practically prepared when your time comes. A cash distribution called a death benefit can be given to your beneficiaries when you include this in your life insurance policy. This can help eliminate any financial worries that your family have as well as help them pay for any unforeseen expenses that may occur. You may think that your pension plan, stocks, and savings will cover all those expenses, but you’d be surprised at how quickly a family can get wiped out in the event of a tragedy. Funeral expenses alone can clean out a bank account pretty quickly.
Life insurance covers your medical bills, debts, taxes, attorney fees, funeral costs, among others. Generally, the insurance proceeds are exempt from income tax. Moreover, with the right planning, your survivors are guarded against having to pay estate taxes. These taxes can sometimes escalate up to 45% of the total value of your estate.You can purchase term insurance if you want to have a payout in the event of your death. This type of coverage is characterized by “what you give is what you get”. Term insurance coverage is intended exclusively as a death benefit.
If you want to have lump sum cash payment, it is important to make regular payments for permanent life coverage and withdraw it when your policy matures. If you decide to do so, you can borrow from your policy as well.Should you choose to have a higher death benefit, you should opt for whole life insurance. You can be assured of a cash benefit in the event of your death as long as you pay the regular annual premiums. On the other hand, universal life insurance is more flexible than whole life coverage because you will be entitled to a higher cash value.
The best time to prepare for the future of your loved ones is right now. Providing care for your chosen beneficiaries is the right thing to do to protect their future. Long after you have gone, you can leave behind a stable legacy. You want your children and your children’s children to remember you fondly and your spouse or life partner to have all of their needs taken care of. How do you do that? You can start by calling McCormick Insurance Solutions and asking us more questions about life insurance. Our number is 619-276-0492.