What are you most grateful for? Lifeway Research (2020) showed that 4 out of 5 Americans were thankful for their family. This was closely followed by health, friends, and memories.
For those covered with life insurance, however, chances are their gratitude list comes with a bit of extra. Because with life insurance, there’s plenty to be thankful for. Here are the top 4:
Peace of mind
Mathematician John Allen Paulos famously said “Uncertainty is the only certainty there is, and knowing how to live with insecurity is the only security.” Nothing provides better security in the face of life’s constant changes than life insurance. It gives your loved one the financial safety net they need in the event you pass on. They will receive a lump-sum payment – provided that all premiums are paid and there no outstanding loans – which they could use to cover debts, replace income, and ensure financial stability. Best of all, it gives you and your loved ones peace of mind, knowing that their financial well-being is secure when the breadwinner of the family is gone.
Tax-free wealth transfer
On top of ensuring financial stability, the benefits of your life insurance make wealth transfer easy. By designating beneficiaries in your life insurance policy, your assets are efficiently passed on to your heirs without the burden of estate taxes as death benefit payouts are generally tax free.
Key to your life goals
Even while you’re living, you can enjoy the benefits of your whole life or indexed universal life. This type of insurance builds cash value as a portion of your premium payments are set aside for investment. As your cash value grows over time, you can tap into this and use the funds to pay off debt, fund your child’s education, pay off mortgage as well as supplement your retirement income.
Tailored to your needs
Life insurance offers plenty of options to fit your needs and your financial capability. For one thing, you can choose between term life and permanent life insurance. While term life covers only a specific term (typically 10 to 30 years) permanent life policies provide lifelong coverage for as long as you pay your premiums. Also, permanent life policies build cash values which you can use even before death. Under permanent life, you have a choice between whole life and universal life. While whole life has a fixed premium and a fixed cash value growth, with universal life insurance you may raise or lower your premium and your cash values may increase or decrease depending on market performance. The indexed universal life (IUL) lets you enjoy these market opportunities. If you want to know more about IUL or any other life insurance which you think fits your needs, call Mercado Global’s Insurance Brokers. Together, we can help you make the most of this financial tool that gives guaranteed protection while helping you build wealth as well.
