When most people think of life insurance, they think of it as a lump sum of money paid to a spouse after they die. This disconnection keeps people from purchasing a policy early in life, when premiums will be less.
It is better to break up the policy’s benefits to see the real world value the policy has. Here are three. Your Connecticut life insurance company can probably think of many more.
Pay for Your Funeral
Funerals can be expensive, even if you prefer cremation and a small service at home. Life insurance provides your family with the funds necessary to cover all of those costs.
Provide a Steady Income
Depending on the size of your benefit, your beneficiary may be able to rest comfortably knowing he or she won’t lose vital income after your passing. By investing the benefit properly, your beneficiary may not have to change jobs, move or reconsider retirement.
Your beneficiary may also have the opportunity to pay off debt, such as school loans, credit cards – even a mortgage – with the proceeds from the policy. This will also make moving forward easier financially.
When you speak with your Connecticut life insurance company, ask them to break it up for you, as well, so you can best understand what you are buying. There is a good chance you may learn of other benefits as well.