Life insurance brings much more to one’s table than protection of life. These are little-known benefits and their importance, which we discuss in the article.
Overview of Life Insurance Benefits: Cash Value, Loans
Primarily, life insurance provides money to beneficiaries, but many policies also acquire cash value over time. Cash value can be withdrawn or even borrowed against, providing the policyholder with an available source of funds during his lifetime. Other Benefits (peace of mind, legacy planning)
Beyond the dollars and cents, life insurance has a peace-of-mind factor. Know that loved ones will be financially set in case you die, which makes life less stressful. But that’s not where it stops. It can prove to be an important element in legacy planning, allowing you to leave your loved ones with a long-term financial legacy-or, if you prefer, to pass on to worthy charities.
Did you know that the roots of life insurance date back to ancient Rome. Burial clubs were forms of life insurance. The money distributed by burial clubs went toward paying for funeral costs, which at best, kept the other family members afloat.
How life insurance fits into comprehensive financial planning
Life insurance is a vital component of a well-rounded financial plan. It can provide for your family’s financial well-being, pay off outstanding debts and other liabilities, or be placed in long-term financial objectives. In this way, incorporating life insurance into your holistic plan will boost your comfort level about your finances.
Stories of real lives that tell the benefits
Karun always thought he had enough time to prepare, but an accident which he had not foreseen put him out of work and financially drained his family. Fortunately, his life insurance ensured them help during those trying times. Only then did he come to realize securing the future of his family was of more importance.
Such stories will explain why life insurance is important. For example, the pay-out can be used to pay off the mortgage to a family; it may fund education to a child; it may also help in continuity of lifestyle in case a bread winner has passed on.
Motivation to take up life assurance as part of long-term planning
Where life insurance is concerned, hardly anyone thinks of this type of tool when it comes to financial matters, but learning about all the benefits changes everything and makes it more like investing in your family’s future.
