The average person knows that if they drive, that they must carry auto insurance, or if they’re a homeowner, that they must have homeowner’s insurance. But when it comes to life insurance, millions of Americans are unaware of how important it really is.
Life insurance is one of the easiest ways to ensure a bright future and financial stability for your spouse, children, or other beneficiaries if the unexpected were to happen to you. At SelectQuote, we can help you find the right coverage for you and your family at an affordable price to provide you with peace of mind. Here are three top reasons to consider a life insurance policy and how SelectQuote can help.
Three Reasons You Need Life Insurance
Not Having Life Insurance Can Put Your Loved Ones at Risk
What would happen to your family if you were to die suddenly? Would your family struggle to pay the mortgage, cover the cost of school, and avoid financial hardship? It’s never the intention to put your family in a compromising position such as this, but it could be a reality if you were to pass away without life insurance. Avoid putting your loved ones in danger and saddling them with debt and no income.
The Burden of Short-term Expenses if Something Were to Happen to You
Passing away without any life insurance can burden your family financially, from burial costs to credit card bills. Plus, the loss of income from your death can jeopardize your family’s home, education, savings, and other assets. Without life insurance, your family may experience financial hardships in the event of your passing. But it doesn’t have to be that way.
At SelectQuote, we can help you find the right coverage for your needs even if you have a busy schedule. In just minutes, we can compare life insurance policies from some of the most trusted insurance companies in the nation on your behalf.
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. First, however, it’s essential to 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 to pay for 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 these days 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 in just minutes. We can compare all of your coverage options 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. We strive to make the process as painless and quick as possible.
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 and in your prime. 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.
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.