Life Insurance: Why do I need? What is he doing?

So why do you need life insurance?

What often comes to mind when you think life insurance is that you can use it to pay for final expenses. You've seen the ads: funeral expenses, funeral expenses and medical expenses can add up to a hefty amount. The last thing you want is for your family to assume this additional burden. Life insurance can be used to plan these final expenses. Permanent life insurance is available in various amounts, so you can choose a death benefit that meets your needs.

But there are other considerations to keep in mind. You can use life insurance ...

As mortgage protection. Whether you live by yourself, with a spouse or significant other, you may want to buy life insurance as a mortgage protection. Think about it: You do not want the person you live with being homeless if you die unexpectedly, do you? Life insurance can be used to repay a mortgage balance. Just select a term that matches the duration of your payment period of the mortgage. Some companies even offer decreasing term insurance, which means that the death benefit decreases as well as the balance of your mortgage.

For income replacement. You and your significant other may have planned for a future based on two incomes, but if one of you dies unexpectedly? Life insurance can be used to replace lost income so that the survivor can maintain the same standard of living.

To finance college. Yeah, I know. You have children, so that it only applies if you do or if you have grandchildren, you want to help. Have you seen tuition rates lately? Life insurance can help pay for a college education. If you die, the death benefit can be invested and grow potentially the amount needed when your children or grandchildren reach college age. If you have permanent policies, the cash value can be used to help fund tuition. Feel better knowing that you helped prepare for the future, even if you are not there to see it.

There are advantages also some additional provisions, if you do you can not be aware of.

protect inheritances. If the beneficiary of a life insurance policy is a person appointed and not your estate, the death benefit is exempt from probate.

Incontestability. After the policy is in force for two years, it becomes undeniable, which means that the policy can not be revoked, unless it was obtained fraudulently.

free from the claims of creditors. In many states, the cash values ​​of life insurance policies are exempt from the claims of creditors if the policy is owned personally.

So, are you beginning to see the need for life insurance? You call your agent now, right? Do not put it off! Remember, the younger you are when you get the insurance, the higher the cost and the easier it is to get approved.