Planning for the future is hard. It’s difficult to know where you and your family will be in five or 10 years, and thinking about the worst possibilities is stressful. However, planning ahead ensures your loved ones are well taken care of in the event of your passing. Having the right life insurance policy can allay fears you may have about your financial security in the years to come. Before deciding on a policy, it's important to understand why you should buy life insurance. Research the policies that are available, and learn about how life insurance can benefit you financially
What can life insurance do?
Having life insurance offers multiple benefits. The right policy can:
Supplement your income
If you're retired and finding that you need part-time job in order to make ends meet - life insurance can help. Selling a substantial life insurance policy will boost your post-retirement income without you having to watch every penny.
Pay off medical bills
Have you or a spouse been left with huge medical bills after a health scare? These medical bills can quickly eat away savings. Selling a life insurance policy will help you pay off medical bills without dipping into your hard-earned savings or affecting your daily life.
Pay for long-term care
If you or your spouse need long-term care in a nursing home or from a home-health aide, your health insurance or Medicare may not pay for these expenses. Selling your life insurance policy will help cover the cost of that care. This way, you can focus less on money and more on recovering after an illness or injury.
Find security for your loved ones
No one wants to think about making preparations for their death. But doing so can help ensure loved ones are well taken care of in the event of your passing. The right policy features final expense insurance, which can help pay for funeral costs. Life insurance can keep your loved ones financially secure, giving you peace of mind and alleviating stress and anxiety. Also, because life insurance benefits are used to help families after a loss, many states are highly protective of the policies when it comes to creditors. This means that the money will stay safe with your loved ones after your death.
Keep college money safe
If you have a beneficiary who is in college or who will be in the coming years, you can take comfort in the fact that life insurance is not considered an asset when it comes to financial aid. This means that if your loved one needs assistance to pay for school after your passing, the benefit money won’t interfere with their ability to receive aid.
The Application Process
Now that you know the benefits of life insurance, you should become familiar with the application process. Typically, as an applicant, you would be required to take a blood test in order for the insurer to determine the correct rate of the policy. The test focuses on your overall health. If you fall under what they consider the "healthy" category, your insurance could have lower premiums. This is determined by your blood pressure, BMI, glucose and cholesterol levels, and whether you take tobacco, nicotine, or drugs. The exam is just one part of the application process, but it’s a crucial factor that helps determine the cost of your premiums.
Planning for the future doesn’t have to be difficult or stressful. Learning all you can about the benefits of a life insurance plan is important. So talk to a financial advisor, do your research, and decide on the right policy for you.