Life Insurance: the Best Investment You Can Make

Life insurance is something of a grim topic for many people. Still, there’s pretty much nothing that people need more than a policy that will take care of their debts and help out their family after they’re gone. This is a good investment that will take people by surprise, but which will do more than anything else to make sure that their loved ones can at least get by in the event that something unforeseen happens. No one thinks that this is going to happen to them, especially when they’re in their early to mid-twenties, but here is why every person looking to have a long and happy financial life should start investing in life insurance right now.

You Can Pay for Your Own Funeral

This is just about the bleakest idea for most people, but listen: funerals are expensive. No matter what you want to be done with your remains after you go, it’s going to cost money. If you don’t have everything picked out already, your family is going to be left trying to pay this out of pocket. The rising cost of dying just goes up and up every year, and on top of trying to get along without the money that you bring in and reeling from grief they’re going to have to try to cover funeral expenses as well. Life insurance can more than take care of these costs.

Instant Funds for Your Family Members

 A life insurance policy can provide for your family
A life insurance policy can provide for your family
Your family is going to have to go through some changes. Whether or not you’re married or have children, those who are close to you are going to have to deal with your debts and your assets. A life insurance policy can provide them with funds that they can use to take a break from work while they grieve and attend to the tasks of setting your affairs in order. It can also be something of a last gift to them; while no one would want to get the money for graduate school in this manner, for example, it can still be a silver lining to a dark cloud.

The Pay off Can’t Be Taxed

One of the major perks of life insurance is that the money that your family receives can’t be taxed as income. This means that the infusion of cash can go directly to the things that they need, from paying off the mortgage on the house to handling credit card debt to paying the bills for a few months while they try to figure out what they’re going to do with their lives now. This untaxed income can be the difference between a painful but doable transition and losing everything.

You Can Borrow Against It in Some Circumstances

06Of course, there are times when you can borrow against your life insurance policies. While this isn’t the best recommended course of action, if you’re trying to pay for medical treatments and things of that nature it’s possible to sign over your policy for your eventual death to someone else in exchange for cash now. Only your financial representative can tell you when that option is a good choice for you, but it’s important to know that it’s there if you ever need it.

Low Costs When You Get It Young

One of the last reasons why life insurance is so good is because it’s so low cost, especially when you get it young. If you’re a young, healthy person you’re going to get a great rate when you apply for life insurance. Keep up on your policy and there’s no reason you won’t be able to keep that locked in rate for year after year, even as you get older and the rates they’d charge you to sign up now keep going up and up.