Life insurance allows you to secure a financial future for your loved ones after you die, so it’s essential to make sure that you have a plan in place. The money not only helps to pay for your funeral, it can provide your family with inheritance funds and more. Some additional uses for your life insurance benefits are as follows.
Funeral costs and final costs
Life insurance policy benefits can be used for what are called “final expenses”, including things such as cremation or funeral costs, as well as certain medical bills and estate administration fees. A mortgage balance can even be covered by your life insurance benefits, among other financial obligations.
Sometimes life insurance benefits can serve as a replacement for your income if you pass away. This allows your beneficiaries to pay for essential things such as mortgages and college tuition funds for children.
You can buy a life insurance policy which names an heir as a beneficiary. Life insurance benefits can also supplement other inheritance funds for your heirs too, allowing you to leave your loved ones with the funds they deserve.
Upon receiving their inheritance, your heirs may be taxed with an estate tax. Life insurance benefits can fully or partially help your beneficiaries to pay off these taxes, allowing them to have fewer financial worries in their difficult time.
Contributions to charity
You can name a favorite charity as your beneficiary on a life insurance policy, ensuring that a portion of your funds will be allocated to a charity of your choice after you pass on. It doesn’t matter if your funds are relatively small, most charities will be happy to receive them!
Looking to find out more about life insurance benefits? Get in touch to find out more about how to secure your finances after you pass away.