Why buy life insurance? Life insurance is a smart decision for a number of reasons—not only as a financial tool to protect loved ones but also as a sound financial investment and planning tool. Buying life insurance entitles the policyholder to the following protections and benefits:
- Buying life insurance protects your loved ones from income loss and financial catastrophe. In the event of death, your life insurance policy can replace some lost income so that family and loved ones do not endure financial hardship. Making home mortgage or rent payments, paying tuition expenses, and covering everyday costs for food, transportation, and other expenses may all be possible with adequate life insurance coverage.
- A life insurance policy can pay for final expenses such as burial costs, estate planning, attorney and administration fees, debts, and medical expenses which all contribute to the high costs that families must endure at the time of a death. The decision to purchase life insurance gives loved ones the peace of mind that these financial burdens do not become lasting monetary hardship.
- Life insurance can also be an inheritance to possible heirs, even if you have no assets at time of death.
- Having the security of a life insurance policy cash payment at time of death can also pay for any possible estate taxes so heirs do not have to sell assets, such as the family home, to cover tax payments.
- Life insurance can also be used to make a planned charitable contribution at the time of your death.
The decision to purchase life insurance should not be taken lightly. If you have questions about purchasing life insurance or questions regarding the process to buy life insurance, please visit the AIA Trust website or contact the AIA Trust administrator, HBI, at 877-801-3727.