Last month's New Year celebrations had good cause; we have a chance to be grateful for the years behind us as we look forward to the years ahead. Chances are, as we clinked champagne glasses with friends and family, the idea of not being around to celebrate with them next year never crossed our minds.
But...what if?
In the event that something should happen to you, will your loved ones be protected? Now that we've embarked on another year of life, it's a good time to think about life insurance.
An Unselfish Investment
Life insurance is truly about ensuring your family has peace of mind if your life should end. Its potential benefits to your loved ones are many, including:
- Time to Grieve In addition to having funds to pay for your funeral expenses, some extra money will allow your family time to grieve. Your spouse may be able to afford to take time off work, if necessary, and spend more time with children.
- New Opportunities for Income The benefit from your life insurance policy can actually help your family generate more income in the future by creating opportunities. For example, your spouse may use the benefit as seed money to start a business; your son may use it as tuition for a college education that will lead to a higher paying job; and your daughter may use it to cover living expenses while she trains for a promising new career.
- Investment Potential Your family can invest the benefit from your life insurance and live off the interest while leaving the principal untouched.
- Freedom from Debt Another function of a life insurance benefit is to pay off your family's debt. Once unburdened of home mortgages, credit card bills, and car payments, they will be free to use their regular income in more constructive ways.
Know the Ins and Outs
Before you start shopping for life insurance, make sure you understand how it works. There are many relevant aspects and terms you must grasp in order to make an informed decision, including:
- Policy Essentially the written contract of insurance between you and your insurance provider, your policy will contain and explain all the important elements of your life insurance plan.
- Benefit Also known as a "death benefit," this is the amount of money that will be paid to the person or entity of your choosing upon your death.
- Beneficiary The beneficiary is the person or entity you have designated to be the recipient of the benefit, such as a spouse or child.
Types of Life Insurance Not all life insurance policies are alike. Term life insurance, permanent life insurance, and whole life insurance all function in different ways.
Call or contact Wilson, Timmons & Wallerstein, Inc. to find out which type of life insurance will best suit your needs and, most importantly, best serve the ones you love after you are gone.