Life insurance is rarely seen as an investment but this is exactly what it is. Life insurance is practically an investment to protect your family from the huge financial losses possible in the unwanted event in which something really bad happens to you. It will give financial security, help with living expenses, cover final expenses, medical expenses, and more. If you ever wondered why you should buy life insurance, Munley Law highlights the following very important reasons to always remember.

A Guaranteed Protection

When you have a business, a family, or literally anyone who is a dependent individual, life insurance stands out as a very strong financial safety net. In the event that you die, beneficiaries receive lump-sum payments. These are guaranteed and you will be sure that the beneficiaries receive exactly what is in the policy, assuming premiums are fully paid and loans do not negatively impact this. Such essential protection should never be taken lightly.

Replacing Lost Income

What will happen to the family in the event that your income disappears? Life insurance offers protection for this. Your loved ones are going to receive money that can be used to help with several things, including:

  • Paying off mortgages
  • Eliminating household debt
  • Dealing with childcare costs
  • Dealing with healthcare costs
  • Covering college expenses and/or tuition
  • Preserving family businesses

Tax Deductions

Every single dollar that is paid through the life insurance policy is enjoyed without having to pay taxes. Life insurance policies are considered to be tax-free federal income. This is one thing few people know so beneficiaries do not have to worry about paying taxes even if the amount received is really large.

Guaranteed Value Growth

Life insurance premiums are often paid for a really long time frame. As premiums are paid, the policy will build cash value. This means it keeps growing and can help the person who has it to deal with several interesting financial goals like:

  • A supplementation of retirement income
  • Paying off mortgages
  • Funding the education of a child
  • Establishing emergency funds to use whenever needed
  • Protecting the assets that already exist

The Potential To Receive Dividends

With some life insurance policies, you can receive dividends when you are eligible. These are not guaranteed and they need to be a possibility based on the policy you sign. However, whenever you receive dividends, they are given to you in cash. They can be utilized to offset insurance premiums or you can actually get some extra insurance so your coverage increases. You make the final choice but remember that this is not always available so if it is important for you, it is important to shop around.

Optional Riders

The whole life insurance policy can be tailored in several ways so that your individual needs are completely met. You can pay a little more and riders can be added for some extra protection. This is possible without extra underwriting. Your premiums would thus be paid by someone else whenever disabled or faced with a bad situation like a chronic illness. You can even get coverage for children if this is what you desire.