According to the 2015 Life Insurance Barometer Study by worldwide research and consulting company LIMRA and Lifehappens.org, 43% of American adults have no life insurance, and 19% have only their employer's group plan.
Advantages of Owning Life Insurance:
The Policy Can Help provide Stability If You're Faced with a financial Challenge.
Some life insurance policies accumulate a cash surrender value over time and allow you to withdraw or borrow a certain amount of that value without incurring a penalty. The cash value can be used to help pay down your mortgage, reduce credit card debt, or even supplement college tuition. Using life insurance as a college savings plan is growing in popularity, 23% of people in the LIMRA/Lifehappens.org survey cited "to provide funds for a college education" as a major or minor reason they purchased a policy. People who do this, however, must pay interest on the amount (if borrowed) and will receive a lower death benefit if the money is not repaid before death.
A Life Insurance Policy Creates An Instant Estate.
Like a trust, life insurance policies usually avoid funds being held up in court, or probate, as long as the named beneficiary is still alive. In other words, if you have life insurance, y
our family will have a source of financial support almost immediately when you die, rather than possibly having to wait up to two years for the courts to decide. This can be especially helpful for young families who don't yet have a lot of savings or assets.
The Policy Stays With You Wherever You Go.
It's usually wise to sign up for any free group life insurance plan your employer offers. But keep in mind that if you leave the company, you may lose the coverage, and it may take a few months for similar benefits to kick in at your new job. Your company may also stop offering coverage when the next benefits enrollment period rolls around.
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