Before the time comes when you need cremation services in Monticello, FL, you should prepare, as much as you are able, for what will happen after you die. This includes having a current will or revocable trust in place. It also means having a life insurance policy to provide your family with financial security after you die.
What is the value of having a life insurance policy?
Many people simply do not think about life insurance, especially when they are younger, even if they have families. Death seems a long way away, if ever, and spending more of a family’s hard-earned income on something that will not be needed until far, far in the future does not seem like a priority.
However, the reality is that none of us knows when death will come knocking on our doors. You may be perfectly healthy now, but you may be diagnosed with a terminal illness in six months or a year. You might be involved in a horrible traffic accident that claims your life. Perhaps you end up in the path of a sudden weather event, such as a tornado, and you lose your life.
Instead of assuming that none of these things could happen to you, it is best to be prepared with the hope that they will not. If you are the primary source of financial support for your family, it is imperative that you take the steps you need to make sure your death will not leave your family in a financially devastating position.
The good news about life insurance – if you are younger and healthy – is that it is very affordable, and you can lock in a low monthly rate if you purchase a whole life (term policies typically have lower rates initially, but the rates tend to balloon after the first term – usually 10 years – ends) insurance policy when age and medical conditions are not a concern.
Having a life insurance policy means you can ensure the financial health of your family after you die.
A second reason why you should have a life insurance policy is that many policies can offer living benefits. These can include protection for a business that you own, supplemental income after you retire, or payment for long-term care.
While you do not necessarily need these living benefits when you are younger, you are more likely to need them when you grow older.
For example, if you do need long-term care when you get older, you may get sticker shock when you see how expensive it is, especially since most assisted living facilities and many nursing homes have Medicare exclusions.
Assisted living facilities, in particular, either do not accept Medicare or have only a few slots available for Medicare. With both assisted living facilities and nursing homes, accepting Medicare as a form of payment is based on how many assets you have. To qualify, in most costs, you practically have to divest yourself of all financial and property assets three years prior to the admission date to be eligible for Medicare admission.
If you have living benefits with your life insurance, you can offset some of the cost of long-term care with those benefits (without having to get rid of everything you own and all the financial resources you have) to make it more affordable.
Life insurance protects your family’s financial security after you die and can provide benefits for you while you’re still living. It’s a good investment to consider when you’re planning for death.