So you’re thinking about life insurance. It’s a big decision, and there’s a lot to consider. But what is the primary purpose of life insurance? Is it worth the money? In this blog post, Daniel Fabulic Insurance Agency experts break down everything you need to know about life insurance. We’ll explain what life insurance is and how it can help you and your loved ones.
1) Inheritance and Death Benefits
Some people purchase life insurance to leave a death benefit to their heirs. The proceeds from the policy can help pay for funeral costs, estate taxes, and other expenses associated with the deceased’s death.
Others purchase life insurance as an investment vehicle. The cash value of a life insurance policy can grow over time, providing you with a nest egg that you can access in retirement or in case of an emergency.
2) Helps Pay Federal and State Taxes
In the event of a death, your heirs may be subject to federal taxes related to inheritance. The money from life insurance can help alleviate this burden. Depending on the size of their inheritance and any other assets they receive, they may also need to pay state taxes. Life insurance proceeds can help with those payments as well.
No matter your reasons for purchasing life insurance, it’s crucial to understand how it works and what it could provide for you and your loved ones. Talk to an agent today to learn more about life insurance and see if it’s the right fit for you.
3) Helps Pay for Final Costs
Life insurance policies help pay for the final costs of a loved one’s funeral and burial. Signing up for a life insurance policy ensures your loved ones don’t have to bear the burden of those final expenses on their own.
4) How Does a Life Insurance Work?
It pays your beneficiary a death benefit after your death. The payment amount depends on the type of policy you have and how much coverage you’ve purchased.
There are two types of life insurance policies: term and permanent. A term policy is just that – it covers you for a specific period, usually ten or twenty years. If you die when the policy is in effect, the policy pays out a death benefit to your beneficiaries.
Deciding on a suitable policy for you and your family can be confusing. That’s why it’s essential to talk with an agent who can help you understand the ins and outs of life insurance and find the policy that fits your needs.
The primary purpose of life insurance is to provide financial support for your family if you pass away prematurely. But, what about those who are still living? Is life insurance worth it if you’re not going to die soon? It’s a complicated question with no easy answer-but Daniel Fabulic Insurance Agency can help. We provide affordable insurance options for businesses and individuals in Louisville, KY. Get a quote from our team now!