5 Benefits of Life Insurance That Make the Investment Worth It

Are you part of the 46% of people in the United States who don’t have a life insurance policy? Whether you think it’s not worth the money or you’re not old enough to need it, the truth is that almost everyone can benefit from life insurance coverage. 

If you’re not convinced, keep reading to learn about the benefits of life insurance so you can make a more informed decision about the policy you need. 

1. It Gives You Peace of Mind

One of the best reasons to get life insurance is that it will give you peace of mind that your family will be taken care of should you pass away. This is especially important if you’re the breadwinner of the family. If you’re worried about what will happen to your loved ones when you die, visit outsetinsurance.com to look for policy options that best suit your needs. 

2. It Sets Your Beneficiaries up for Success

When people think about life insurance benefits, the first thought is that it can act as a supplemental income for beneficiaries. But, the truth is that it can do so much more than that. In many cases, life insurance payouts can give your family financial security. For example, the payouts can be used to repay outstanding loans so your family doesn’t have to take on that burden themselves. 

Or, your children can use the life insurance money to cover education costs. This can be a difference-maker in helping your family build generational wealth.

3. It Can Cover Your Final Expenses

When you pass away, the last thing you want to do is saddle your loved ones with expensive funeral costs. When you have life insurance, the payout can help cover the costs of your burial or cremation expenses as well as overall funeral costs. This gives your family the opportunity to grieve without having to worry about how they’re going to pay for it. 

4. It Offers Tax-Free Payouts

Another benefit of life insurance is that when you die, your beneficiaries will receive a lump sum amount, based on your coverage. These payouts aren’t considered income in terms of taxes. As a result, your beneficiaries won’t have to claim the money as income on their tax returns, keeping more money in their pockets during this time of need. 

5. It Can Accumulate Cash Value

Depending on the type of life insurance policy you choose, it may be able to accumulate cash value over time, in addition to the death payout benefits it provides. In that case, as it builds value over time, you can use it to cover some expenses while you’re still alive. 

For example, you might use it to put a down payment on a new home or to supplement your retirement savings. However, keep in mind that cash value life insurance usually has higher premiums than term life insurance, which only provides death benefits. 

Explore the Benefits of Life Insurance for Yourself

Now that you know more about the benefits of life insurance, you don’t want to wait any longer to find a policy that works for you. Since death is unavoidable, having life insurance is a great way to ease some of the burden for your surviving loved ones. 

To read more lifestyle posts like this, be sure to check out our other articles before you go.