Life insurance is an insurance that becomes available to the family as a lump-sum payment on the death of an insured person. It offers several benefits such as financial protection, income replacement, covering any debts, funeral planning, estate planning and education funding.
The policyholder may have set the policy amount based on the lifestyle of the family. The family can continue to maintain that lifestyle without losing their home that may have a mortgage payment that they can no longer afford.
The primary goal of a life insurance is to pay off the outstanding debts such as the mortgage payments, car notes, credit card balances and any other financial obligations a policy holder may have had to manage with their income.
Often, insurance is used for estate planning. It can cover estate taxes and can provide the beneficiaries with their inheritance without having to sell the assets.
For business owners, life insurance ensures the continuity of the business. Its proceeds can be used to fund the business or to buy out the deceased partner’s share.
It can cover education for children or grandchildren if the policy holder is no longer able to provide the support.
Life insurance can also have cash value growth in permanent life insurance policies and can offer tax advantages.
Life insurance provides financial protection for loved ones. Allowing your loved ones to continue the lifestyle and protecting them financially can be invaluable to one’s peace of mind.
Karstens Wealth provides their expertise and can review your financial situation to determine what services will fulfill your needs. Our advisors are available to help you guide and to determine the most suitable life insurance coverage for your situation.