6 Reasons You Should Consider Buying Life Insurance

Everyone’s reasons for buying Life insurance are different. But buying insurance is primarily about providing financial security for yourself and those you care about. Learn why life insurance is essential and who needs it.

What is The Significance of Having Life Insurance?

Buying life insurance protects your spouse and children from catastrophic financial losses if something happens to you. It provides financial security, helps pay off debt, helps cover living expenses, and helps cover any medical or terminal expenses.

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Life Insurance Provides Cash When You Need it Most.

Your life insurance policy can pay you a certain amount when you need it. After your death, your family will receive your policy payout immediately. That death benefit is generally not subject to federal income taxes. For example, a $500,000 policy pays $500,000 in death benefits directly to your beneficiaries.

Steps in Insurance Buying Process:

• Determine your goals, how much insurance you need to reach your goals over time, and what you can afford to pay.
• Find out which type of insurance will help you meet your needs.
• After considering the initial premium payment, the potential increase in premiums over time, any additional death benefits, 1 and life benefits used before your death.

Remember that working with a financial professional can help make this entire process easier. A financial professional can help explain the differences between the types of policies, calculate the amount you need, and provide you with possible options that may meet your needs.

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6 Reasons to Buy Life Insurance

Life insurance can give you permanent peace of mind that you’ve passed on an inheritance. Because the right coverage can offer a valuable mix of benefits, many of New York Life’s claims-paying capabilities are guaranteed — so you and your loved ones know exactly what you’re getting. 3 Of course, you should create one. A long-term commitment to pay the premium and keep the policy in force. Some common reasons for buying life insurance are:

1. Guaranteed Protection

If you have a family, business or other dependents, the life insurance benefit of a whole-life policy acts as a financial safety net. After your death, your beneficiaries will receive a lump sum which is guaranteed to be paid in full (provided all premiums are paid and there are no outstanding debts). It is essential security that you can rely on for your loved ones when needed.

2. Income Transfer

Imagine what would happen to your family if your provided income suddenly disappeared. With whole life insurance, you can help make sure your loved ones have the money they need to help them:

• Pay off The Mortgage
• Can purchase childcare, health care or other services
• Cover tuition or other college expenses
• Eliminate home loan
• Save the family business

3. Tax-free Benefits

Your beneficiaries can enjoy every penny you leave behind because life insurance policy benefits are generally free from federal income tax.

4. Guaranteed Cash Appreciation

As you pay your premiums, your whole life policy builds cash value that guarantees growth—tax-deferred—and helps you achieve various financial goals:

• Replenishment of pension income
• Fund a child or grandchild’s education
• Paying off the mortgage
• Protect existing assets
• Establish an emergency fund

5. Dividends Are Possible

One of the benefits of buying whole life insurance from New York Life is that you are eligible to receive dividends. 4 Although they are not guaranteed, when dividends are paid, you can take them as cash, use them to cover your premiums or use them to purchase additional insurance that increases your coverage and cash value. Premium. Do it or cash it.

6. Substitute Riders

There are many ways to tailor a whole life policy to meet your individual needs. For additional expenses, you can use riders to purchase additional coverage without additional insurance, pay your premium if you become disabled, and use some of your face amounts to pay for chronic illnesses. You can avail of or purchase coverage for your children. Your agent can help you decide if any of these riders are right for you.