Protect Your Loved Ones: September is Life Insurance Awareness Month
As kids are back in school and the leaves are beginning to change in Missouri, September not only marks the return to our normal schedules; but, it also serves as a timely reminder that it's Life Insurance Awareness Month. Life insurance can be a hard topic for many people to discuss because it involves you or your loved one(s) leaving this life before the main benefits can be accessed. However, avoiding the topic too long can leave you ineligible for coverage and leave a hole in your family’s financial planning.
Why Life Insurance Matters:
Life insurance is a financial safety net that provides a lump sum payment to your beneficiaries upon your passing. This payout, known as the death benefit, can help your loved ones cover various expenses, including:
Funeral Costs: The cost of a funeral can be substantial, and life insurance can ease the financial burden on your family during a difficult time.
Debts and Expenses: Life insurance can help pay off outstanding debts, such as mortgages, loans, and credit card balances, ensuring that your family isn't left with these financial responsibilities.
Income Replacement: If you're the primary breadwinner, life insurance can replace your income, allowing your family to maintain their standard of living. If you’re a stay-at-home parent, life insurance can provide income to replace many of the ways you help your family such as paying for a nanny to take the children to and from school, a maid to clean the house, and a tutor to help the children with their homework.
Children's Education: Life insurance can also be used to fund your children's education, ensuring that their future remains secure. There are some cash-value policies that many Staggs Financial Services clients prefer to use instead of 529 and Education Savings Plans (ESAs) in case their children don’t want to go to trade school or college. This can allow the clients' children to use the money to put a down payment on a home, pay for their first car, and accomplish other important financial goals.
Here are 3 Benefits of Life Insurance:
Peace of Mind: Knowing that your loved ones will be financially protected if something were to happen to you can provide peace of mind and reduce stress. Staggs Financial Services’ motto is “trust, security, and peace of mind” for a reason. We understand it’s important for you to have confidence in your family’s next financial steps.
Estate Planning: Life insurance can be a valuable tool in estate planning, helping to minimize estate taxes and ensure a smooth transfer of assets to your heirs.
Tax Benefits: In many cases, the death benefit from a life insurance policy is tax-free, providing a significant advantage for beneficiaries. There is also tax-deferred growth in many cash-value plans which allows for your money to grow without taxes. This can be a sound insurance-based financial strategy for high-income earners.
Take Action during Life Insurance Awareness Month:
It’s easy to read this blog post and recognize the financial gap you may have in your life. However, meeting with a Licensed Financial Adviser can help you assess your needs, review any existing policies you may have, and compare policies. Staggs Financial Services contracts with 125 different carriers to provide you with the best value for your investments. Schedule a free consultation today.