Life insurance is more than a safeguard in case a loved one dies; it’s a lifeline for those left behind. At Telco Credit Union, we know how important it is to save money and consider your financial future. One such way is to set your family up as best as you can with life insurance policies. Telco serves the Eastern North Carolina area, including Greenville, Tarboro, and Rocky Mount. You can trust Telco with all your financial needs, whether you’re looking to open a checking or savings account, take out a loan, finance your mortgage, or become a Telco member/owner.
There are many reasons why life insurance is necessary and helpful for you and your family.
1. Replace Lost Income
Life insurance works to provide financial security to your loved ones after you pass away. You have to consider what would happen if you were to die suddenly. This is especially true if your loved ones rely solely on your income. Get yourself adequate coverage. That way, you won’t leave your loved ones helpless when the monthly bills come around.
2. Cover Burial Expenses
Sadly, even a basic funeral service can run upwards of several thousand dollars. Life insurance can give you and your beneficiaries more of a guarantee, lifting a burden off of them as well as yourself.
3. Pay Off Debt
Your death doesn’t necessarily mean your debts will disappear. In the instance that you and your spouse have co-signed for a mortgage or other loans, your spouse may become entirely responsible for repayment. The other outcome could result in creditors trying to collect from your estate. While that gets rid of your debts, your heirs will receive the depleted remainder. Life insurance allows those you leave behind to take care of any lingering financial responsibilities.
4. College Planning
There are a number of ways to save money for your child’s education. You may not have thought that a life insurance policy would be a good option. But insurance payouts can actually provide a good supplement your savings. If your child ends up borrowing money to get through school, the insurance proceeds could also help wipe out pesky student loans.
5. Build Cash Value
Term life insurance, a type of life insurance, stays in place for a set period of time. But another option, whole life insurance, provides permanent coverage that only ends if you cancel the policy. Whole life insurance allows you to build up cash value over time, an attractive prospect to everyone. That cash value acts as an extra cushion that you can tap at any time. This may come in handy if you have a financial emergency down the road.
6. Diversify Investments
Some people also use life insurance as an investment tool with universal life policies. These policies are tied to a specific investment product. Then policyholders receive dividend payments based on the product’s performance. Read the fine print before you dive into this type of insurance.
7. Business Planning
If you own a business, it’s vital that you have life insurance. This covers your obligations so your hard work doesn’t go to waste. Are you involved in a partnership with someone else? You should both have coverage. That way, if one of you dies, the other isn’t left holding the heavy financial bag.
8. Estate Taxes
When someone passes away, their heirs often face estate and inheritance taxes on any assets they receive. If you’re worried about your loved ones getting hit with a big tax bill, a life insurance policy can help cover these added costs.
9. Coverage is Affordable
One of the excuses people tend to make for not buying life insurance is the cost. But truthfully, coverage often ends up pretty affordable for most people. Term life tends to be less expensive than whole or universal life. Plus, the younger and healthier you are, the lower your premiums will be. Unless you smoke or have a preexisting health condition, you could find coverage for as little as $1 a day.
10. Peace of Mind
No one can truly predict the future. But having life insurance means you and your loved ones can prepare for any eventuality. Even with a small policy, you may find yourself sleeping a little easier at night knowing that your family has protection in place should something happen to you.
Let Telco Credit Union help you today with any and all life insurance needs. Contact us today!