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Not sure if life insurance is worth the investment? Here are 9 reasons to take out a policy.
As we age and our family, health and finances change, our need for life insurance changes. Life insurance is there as a financial safety net if you die unexpectedly. The right policy can cover debt like credit cards, mortgage and education, and it can take care of others who financially depend on you.
When thinking about the kind of coverage you might need, consider your debts and assets, lifestyle and dependents.
9 benefits to buying life insurance today:
- You’ll have ultimate peace of mind that when you pass your family and loved ones will have a financial safety net.
- Life insurance will pay a lump-sum benefit to help with financial gaps left behind.
- Payouts are generally tax free.
- Some companies offer multi-policy discounts for taking out a joint policy with your spouse.
- Coverage can generally be bundled with other types of life insurance.
- Some brands let you increase or decrease the benefit of the policy in the future.
- There are types of life insurance that have a cash value. A portion of the paid premium is set aside and either accumulates interest or is invested in the market. You can borrow from that cash value, or keep it as an end-of-life payout.
- Most policies provide an advance benefit, without a waiting period, to help cover immediate costs following death.
- As you get older and become more of a risk to the insurer, you may not qualify for a life insurance policy or will pay more.