A lot of us associate life insurance with misfortune and demise. In reality, life insurance is for your life while you’re living. In absence of life insurance, a sudden death of a breadwinner could lead to the family without adequate resources to sustain their lifestyle.
Experts and lifelong professionals suggest that families should have a life insurance policy with an unforeseen death benefit of 10 times their existing annual household income. However, with the increase in rising house prices over the recent years in various parts of the country, soaring college costs and low interest rates, experts recommend that having 20 times your household income should be the case.
Life insurance forms the basis of your financial plan for the following reasons:
• Provides income replacement – earning money is the basis to sustain your household. When and if you have people depending upon you, you need to consider how would they sustain without your income.
• Covers outstanding debts and long term obligations – with no life insurance, your loved ones have to bear the burial costs, credit card debts and other medical expenses not covered in a typical health insurance. The life insurance policy can also be used to pay off your mortgage, aid in your retirement savings and fund your college tuition.
• Can be used for estate planning – the income of a life insurance policy can be used to pay taxes so that your successors will not have to dissolve other assets.
• You can donate the amount to charity – if you’ve got a charity, you can donate the proceeds of your life insurance to a charity organization.
If you have any queries regarding your life insurance or home insurance, feel free to consult us. We at Insure Floridians specialize in best insurance for homeowners. Also, fill out the free quote form to get the most affordable insurance rates out there!