A lot of unexpected things seem to happen when we least need it in life. Things could be going your way when all of a sudden you are hit with something out of the blue that messes all your plans. This is why it is very important to be prepared and to always have a backup plan because this is the only way you’ll ever be able to take life’s blows and keep going. One of the better ways to do that is getting a life insurance agent to help you set a policy that will do you more good than you could possibly imagine. Here’s how they can help you.
A safety net for the family
A lot of people’s most important financial priority is making sure their families are well taken care of when they are gone, especially if you are the primary caretaker. This is exactly what a life insurance agent could help you do. They will set up a life insurance policy that ensures that your family will comfortably be able to pay any funeral or other medical expenses. More importantly, they would be able to have enough money to keep them going for quite some time, as beneficiaries of your policy. The death benefit they receive will support your family long after you are gone, which is why most people get life insurance policies in the first place.
Paying off debt
After having secured your family’s financial future when you are gone, there comes another financial priority for most people, and that is paying off debt. But how can your life insurance policy help you do that? Well, you invest money in your policy by paying premiums every month, and, fortunately, you can tap into that money in case of emergencies and take out a loan so you could settle some urgent debt or pay for an unexpected medical operation. As you can see in articles from StateRequirement, helping people like that is actually the reason why a lot of people become life insurance agents, though there are several steps entailed here. Back to the debt, you are basically borrowing from your own money here, but it won’t happen overnight, though. You need to have actually been paying premiums for some time before you can start taking a considerable amount.
Still, borrowing money from your life insurance policy has a lot of pros –– and cons. The money you borrowed won’t show on your credit reports, and the initial access to the funds is quite easy and straightforward because there are no credit checks or long approval processes. Because it is your money, you can pay back the amount taken as you please, without any actual deadlines. If there are interest rates, they will most definitely be less than a typical bank loan. The biggest downside, though, is the fact that you are taking from the death benefit you’re leaving your beneficiaries, which means they will receive less money if you don’t pay it back.
Settling inheritance is another reason why you will need the help of a life insurance agent. There doesn’t have to be a beneficiary in its traditional meaning. Some people do get life insurance policies with the goal of leaving the death benefit as some form of inheritance to one of your loved ones. They don’t even need to be a direct relative if that is what you choose. By doing this, you will be making sure that your life insurance money will go to the person you intended and not someone else.
One of the greatest things about life insurance policies is the tax benefits that come along. The death benefit that the beneficiary receives is tax-free, which is something very important to the people getting the money and to you, as you’ll basically be leaving them more money without the need to pay any taxes.
Assuming you make it to old age, you will find that expenses are piling up and your pension isn’t covering your financial needs. This is when you can access your permanent life insurance policy to get some extra retirement income, which does come in handy and could save you a lot of nuisance in your old age.
A life insurance agent will help you take care of your financial priorities, and you will be able better able to relax when you retire. The ultimate goal is making sure that your family is taken care of when you die, and having a source of money on the side to tap into in case anything goes wrong, and a life insurance agent will help you sort that out.