In uncertain economic times it might seem odd to turn to life insurance as a financial security blanket. But there are some very good reasons you might want to take a second gander at this often-overlooked fiscal planning tool. Life insurance can, in fact, provide you with the security you seek.
The following are some things to think about when considering life insurance.
Financial Protection for Your Family in Their Hour of Greatest Need
The loss of a loved one is never an easy thing to get over. However, the financial burden can turn a bad situation into disaster. Life insurance can ensure that your family is able to replace a lifetime of lost income.
One of the benefits of some whole life insurance policies is the ability to obtain low-cost policy loans even when the bank says no. If the policy owner borrows from the policy, the cash value is used as collateral and interest is charged at the rate specified – or described – in the policy.
An increasingly popular option among many forms of life insurance is the ability to obtain a cash-out equivalent in the event of a catastrophic illness or injury. It’s another way life insurance can be there when you or your family needs it most.
Leave a Legacy
Despite their best efforts, many people find it difficult to leave a financial legacy to help their children and grandchildren. Retirement accounts and the stock market have taken a beating in recent years. As a result, more than a few portfolios have also taken dramatic hits.
Rather than trying to time the market, more people are locking in a true legacy through the purchase of life insurance.