We all know how unpredictable life events can be and, quite often, we are not prepared when the inevitable happens. Purchasing life insurance is probably one of the most important decisions one can make to protect loved ones when needed. However, deciding on the right life insurance policy and appropriate time to get it depends on your future goals. Whether you wish to provide a tax free income for your beneficiaries, getting a life insurance policy can be important for the following:
- A source of savings - If not paid out by death benefit, some types of life insurance can have a cash value.
- Final expenses - using life insurance to pay for funeral and burial expenses.
- Income for dependents - a life insurance policy can provide much needed income for your dependents/beneficiaries when you die.
- Inheritance - using a life insurance policy as an inheritance even if you don't have substantial assets to pass on to your beneficiaries.
- Making charitable contribution.