Many people wonder if they should get a life insurance policy. In some instances, you might have a hefty savings account and not think it is necessary to have a life insurance policy. In most cases, however, it is best to have life insurance, even if you have ample savings. Here are some reasons why you should carry life insurance.
1. Your Money Could Get Caught In Probate
After you pass away, your estate may have to go through a process called probate. Probate happens when you have a will that needs to be executed. If someone contests your estate it could take a good deal of time for your loved ones to get access to your money. The money you might have set aside to pay for funeral, health care and other expenses is now tied up in a long legal process, leaving your family in a tough situation.
Life insurance is paid to the beneficiary upon your death. This means that all of your loved one has to do is show your death certificate and they get the money from the policy. This will make it easier and quicker for your family to get the money they need.
2. Life Insurance Isn't Taxed
When you pass away there is a good chance that your estate will be taxed. It is normal to have many taxes on your property and estate as it is passed to your children. Thus, you might be thinking you are leaving your family a certain amount of money, but in reality, after taxes, they don't have nearly as much as you would have hoped.
With life insurance, you know that your family will be getting the full amount. The government doesn't tax a life insurance policy, which is why it is the best way to make sure that your family gets the money they need.
3. You Never Know How Much Money Your Family Will Need
Even you though might have a hefty savings to pay for a funeral and other expenses, you never know if there will be more expenses than you planned on surrounding your death. For instance, what if you needed a lot of medical care in your final days, if you stayed longer in a rehab or nursing home than you thought you would, and a myriad of other things. It is good to have a life insurance policy to help cover these unforeseen expenses that could eat up your savings.
For more information or to set up a life insurance policy, contact an agent at Sunset Insurance Agency.
Share27 July 2016
