Life insurance is an essential element of financial planning, yet many of us may not fully understand or take advantage of the benefits. Of course, the kind of policy you choose and how much coverage you purchase depends on your unique needs and situation, but here are a few reasons to consider including it in your financial plan.
It protects those who depend on you
If you get injured, fall ill, become disabled, or die, a life insurance policy can help guarantee that your loved ones can continue to pay for current and future liabilities, including:
- Home mortgage
- Daily bills
- Loan repayment
- Your child’s education and/or marriage
It can defend against the unexpected
With a permanent or whole life insurance policy, you can borrow against your policy to help in an emergency. Whether there’s a financial crisis or you encounter a major unexpected expense, you can opt to withdraw from the cash value of your policy to help keep you from spending funds you’ve set aside to pay for other important life events, taking out a second mortgage, or dipping into your child’s college savings.
It helps cover end-of-life expenses
Since life insurance pays your beneficiaries directly upon your death, you can rest easy that your outstanding debts won’t affect the amount of money that your family needs to pay for your final expenses.
It allows you to leave an inheritance
For many of us, it’s important that we leave a financial legacy for our families. With life insurance, your beneficiaries won’t have to pay taxes on the death benefit in most situations due to the after-tax income premiums you’ve already paid.
There are many life insurance options, all with specific nuances that can benefit you and your financial plan in various ways. It is therefore crucial that you educate yourself and seek the guidance of experts who can assist you in choosing what’s best for you and your family. As a result, your Employee Assistance Program (EAP) includes financial services, which provide personalized consultations with financial experts. Call any time, day or night, and an EAP representative will assist you with arranging a confidential consultation.
The EAP is a voluntary and confidential employee benefit available to eligible federal employees at no cost.
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