Insurance provides a much-needed safety net in life, whether you’re protecting your car, your home, or your health. However, the importance of life insurance is often overlooked, despite its value in protecting your assets and your loved ones.
Life insurance is an easy way to provide financial security and peace of mind for your family if you were to pass away. At SelectQuote, we can help you find the right life insurance coverage for your needs and budget. Here are three reasons to consider a life insurance policy and how we can help.
Three Reasons You Need Life Insurance
1. Not Having Life Insurance Can Put Your Loved Ones at Risk
One of the best ways to take care of your loved ones is to plan for their future. If you were to pass away suddenly, your family could be left with unexpected financial burdens. Having life insurance can protect your family by providing for basic expenses like mortgage payments, school costs and paying down debt.
2. The Burden of Short-term Expenses if Something Were to Happen to You
Passing away unexpectedly may not only cause long-term financial instability for your loved ones, but can burden them in the short term as well. Funeral costs can quickly become significant, jeopardizing your family’s savings and other assets.
At SelectQuote, we can help you find the right life insurance coverage for your needs and budget. We search highly rated carriers In just minutes, saving you time and helping you find protection and peace of mind for your family.
3. You Could Be Missing Out on Tax Benefit Opportunities
In addition to providing for your family after you're gone, life insurance may also be a wise and responsible decision when it comes to minimizing your taxes. However, it’s essential to first understand that not every type of insurance has tax benefits.
There are four scenarios in which life insurance policies might be tax-exempt:
Permanent Life Insurance: Permanent life insurance policies often have a cash value that grows over the term of the policy. That value becomes collateral that can be used as a savings account to pay for large expenses, like a college education or even a home. If you "surrender" or sell your policy, the amount of cash value "basis" can be tax-deductible.
Business-paid Premiums: If your life insurance policy deducts business-paid premiums that the company's executives or employees own, the executive or employees that possess the policies are responsible for the taxes.
Cash Dividends: Dividends are considered returns on the payments of the life insurance policy due to overpayments in premiums.
Beneficiary Payouts: The payouts to your life insurance beneficiaries may be tax-exempt.
It's always a good idea to consult with your tax advisor, CPA or estate law attorney to fully understand the tax implications or deductions of life insurance policies and benefits and make a plan to mitigate your tax liabilities.
Perception vs. Reality of Life Insurance
There's a lot of noise out there when it comes to what insurance is right for you and your family, but at SelectQuote, we can simplify the process and answer any questions you have. We can quickly compare policies available from the trusted life insurance companies we work with to find the right amount of coverage at a price that works for your budget.
You may think you're too young or too healthy to consider purchasing a life insurance policy, but accidents and death can happen to anyone, even if you're young. Whether you’ve recently started a new job, gotten married, started a family, or just haven’t taken the time to explore your options, the sooner you look into life insurance coverage, the better, as premiums will only increase as you age. The younger and healthier you are, the better your chances are of locking in a favorable rate.
If you find the traditional life insurance application process too time consuming, consider no medical exam life insurance. Also known as instant life insurance, this coverage type lets you skip the medical exam and still qualify for up to $5 million in coverage as long as you’re under the age of 60 and in good health. Working with SelectQuote makes this process quick and easy, with most applications being processed in less than an hour.
Celebrate Life Insurance Awareness Month with SelectQuote
Life insurance can be a difficult and overwhelming topic, but at the end of the day, it can provide you with peace of mind that your family would be financially protected if the unexpected were to happen. You can get started on figuring out how much coverage you may need with our life insurance calculator. Once you’re ready to shop around and compare your options, our team can help you determine the right coverage for you in just minutes. Get started on your free quote with SelectQuote today.
