The following is a guest article from Jim McKinley.
Life insurance has many benefits, from helping your loved ones make difficult financial decisions after your death to allowing you access to a lump sum of money when you need it most. The best time to plan for the future is now, before there are any issues, because you can take your time and make sure you're going to have everything you need. By purchasing a life insurance policy, you're helping to secure your future regardless of your health.
You should also think about final expense insurance, which is a more affordable option for those who are on a tighter budget. This will help ensure that your family members can take care of any provision after you're gone, as funeral costs are steadily rising. This type of insurance doesn't have many restrictions, meaning you won't have to jump through countless hoops to qualify, and the premiums are generally lower.
Keep reading for some great tips on how to benefit from life insurance.
Consider A Smaller Benefit
While life insurance often has a payout of thousands of dollars, there's an option that won't pay as much but will allow you to have a smaller premium. Final expense insurance isn't meant to help a family cover lost income after the death of a loved one; its sole purpose is to make sure the funeral costs are taken care of. These services can run into the tens of thousands of dollars, creating a hardship for families who haven't planned ahead. Consider paying a smaller amount now to ensure that your final wishes will be carried out without issue.
Pay For Long-Term Care
Depending on the type of life insurance policy you have, you may be able to receive a lump-sum payout early if you need it to cover medical bills or long-term care. Medicare and other health insurance policies will often only cover part of a hospital or nursing facility stay, leaving you to pay out-of-pocket for the rest. By accepting a reduced amount in the event of your death, you can receive cash at any time with many of these policies.
Sell The Policy
If you find that you are unable to keep paying your life insurance premiums or don't need the policy anymore, you can sell it, provided you meet certain criteria. Usually, seniors over the age of 65 and those who are holding a policy worth more than $100,000 benefit the most. It can be a complicated process, and you'll want to either go through a provider or a broker, so it's important to do some research before making any decisions.
Make Sure Your Children Are Taken Care Of
Most parents want to ensure that their children are well taken care of in the event of their passing, and if you are a single parent or your kids are very young, this is especially important. Having supplemental insurance can help give you peace of mind and will allow you to provide for your family no matter what the future holds, from helping to pay for their college needs to allowing them to live comfortably after you're gone.
Buying a life insurance policy is certainly an important part of adulthood, but it shouldn't be a stressful one. Think about all the benefits this type of insurance can provide, and talk to your loved ones about your wishes and plans so they'll know how to proceed after your passing. With a good plan, you and your family can have peace of mind where the future is concerned.