You might have heard about life insurance from your friends, family, and colleagues – but you didn’t feel the need to get it? Don’t worry; you are not alone. According to William Schantz, Many people across the country have not opted for life insurance simply because they don’t understand the benefits of the policies and how helpful they can be, not just for them but also for their families.
The majority of the people in the USA believe in the myths that are attached to the concept of life insurance. While something is too expensive, this believes the process is just too complicated to get into. At the same time, there is no denying that life insurance requires you to do a little bit of paperwork and pay a certain amount. But when you get to know about the benefits of the insurance, you will realize it’s worth and why it is the right thing for you to do.
Hence, if you are still skeptical and unsure if you must get one or not, Schantz has compiled a list of 3 benefits of life insurance that are enough to convince you.
Benefits of Having a Life Insurance
1. Avoid Tax with Insurance Payouts
Insurance payouts are the expected monetary returns or financial disbursement from your annuities or investment, which means the amount you or your family will receive against the life insurance you have bought. The good thing about these payouts in case of a life insurance is that they are tax-free.
You might think, how? Schantz explains that these payouts are not considered an “income” for tax purposes, so the beneficiaries are not expected to pay any tax against the amount they receive. Hence, for example, you have opted for life insurance and after some time your family will receive a lump sum amount without paying tax for it.
2. Your Dependants will Live a Financially Secure Life.
Sometimes you don’t have to think about yourself but about your family members – and life insurance is a decision you must take. William Schantz states that having life insurance means having about 7 times your annual income. This means you don’t have to worry about leaving your family in financial constraints in case of your death – your insurance will be able to cover their expenses and help them maintain an income stream.
3. You Don’t Have to Worry about Final Expenses.
Funeral costs are also expensive, and many families can’t bear them. If you think you will be leaving behind a family that can’t manage your burial cost and expenses pertaining to your funeral, then Schantz suggests that life insurance is the best option for your final expenses.
Moreover, many families in the US have trouble trying to save up for emergencies – and a funeral can be an expensive emergency for them. Hence, having life insurance will provide your beneficiaries with the required amount for your expenses.
We hope the 3 significant benefits of life insurance shared by William Schantz were good enough to convince you to get one. This is a decision, not just for yourself but also for your family members; therefore, without wasting any time, go and secure your and your family’s future and financial stability.