At the Wooten Agency, we believe that life insurance is a smart investment for our customers and their families.
If you are considering a plan, review our top 8 reasons that you need life insurance below.
It’s cheaper than you might think.
Even though we’re talking about some very large numbers here, life insurance is inexpensive for the average person. In fact, according to the industry organization LIMRA, 80% of people overestimate the cost of term life insurance. Your policy will likely end up costing you less than you are imagining – especially when it is broken down into a monthly payment.
It’s better to buy life insurance early.
Policies are easier to pay for if you start early and make more frequent, smaller payments over time.
For example, a male who is 30 years old who wants a 30-year policy for $250,000 would only pay around $20 a month, while a male who is 45 years of age who wants the same policy would have to pay around $50 a month.
You can take advantage of living benefits.
Most policies contain automatic accelerated death benefits riders (options) that allow a terminally ill person to collect a significant portion of his or her policy’s death benefit while still alive. The money can be used to get family finances in order, pay for uncovered medical expenses, or simply do certain things for your family or friends while you still can.
You can name more than one beneficiary.
When it comes to who to name “beneficiary of benefit received” you can name many different ones. This means there is no uncomfortable topic up for discussion or things to figure out in the time of grieving. The percentages can be different as long as they add up to be 100%.
Life insurance is not a product, it is an investment.
Life insurance is an investment because you are investing in the future. If you are no longer here, this will take care of your family. Your life insurance policy could also earn positive interest which could be used to pay for college or support retirement.
Life insurance is tax-free.
Unlike almost everything in life, the benefit paid out from life insurance is tax-free. This means the money you build up for your beneficiary (or even retirement fund) does not have to be taxed and consequently cut down by a third.
You do not have to have a medical exam to get a policy.
There are nonmedical policies in which a person can easily get coverage up to $400,000 with no medical exam. You only need to answer a few easy questions. Most customers can complete the process for coverage in 30 minutes with no hassle.
You could be earning interest.
Some life insurance policies can earn a customer up to 12% interest a year. This interest can build over time and be used to pay for a child’s college tuition or become a retirement fund to supplement your 401k or social security for yourself.