Anxiety over the future has escalated due to the financial impact of the pandemic. The world is centered on the present moment. Some people who are in survival mode might not even be able to afford financial planning.

Almost 80% of millennials polled actually don’t have a will in place, and 25% of them say that they don’t have enough assets to support their wishes. We understand that these are difficult times. On the other hand, life insurance could be essential to establishing future financial security.

Defending Assets and Loved Ones
There are individuals who depend on you and your income potential if you are a small business owner, a spouse, or a parent. Certain debts, like a mortgage, do not immediately disappear upon death.

Life insurance coverage can safeguard your loved ones and provide them with a means of continuing to pay payments, even if you have a limited budget. Term life insurance is among the least expensive choices. The following can be accomplished with a term life insurance policy:

• Pay off a mortgage debt.
• Cover funeral and burial costs.
• Keep a small business running during the transition.
• Cover credit card debts or loans.

Give an heirloom
Giving your kids an inheritance is generally a good idea. If you don’t have life insurance, your assets can be used to settle debt. Your family could have to sell your material possessions if you die in debt in order to pay off the remaining sums.

However, a life insurance policy can pay off current bills and secure your spouse’s or children’s financial future. Your kids can save money for college or a down payment on a house by creating a nest egg.

Planning an Estate
It could be challenging to plan for retirement while still meeting current financial obligations. When life is happening right now, investing in private retirement or choosing to make the maximum contribution may take a backseat.

There are other benefits to using life insurance for estate planning, in addition to certain plans like cash value options and perpetual life insurance. To make up the difference when private retirement falls short, you might borrow against the policy.

There will be ongoing financial obligations after your passing. Advantageous tax benefits come from using life insurance payouts to plan your estate. These benefits include:

• Offset the burden of inheritance tax, as life insurance is generally exempt.
• The continued support of minor children or people with disabilities.
• Help cover expenses during the process of probate.
• Help equalize heirs of an estate.

Final Thoughts on Life Insurance and Financial Stability

There are certain guarantees in life, and death and taxes are two. Planning for your loved ones’ futures may be difficult as life takes all that it demands. While you’re out making your living, consider life insurance as a way to protect those you love and your investments in the event of your passing. Speak with one of our knowledgeable agents at PHP agency to get a quote on an affordable policy.