5 Reasons to Buy Life Insurance

Should I buy life insurance? That may be a question you have asked yourself over the years as you have worked to get your financial future in order. There are plenty of reasons to buy life insurance, yet some people may be hesitant to make the investment, as they envision it primarily as a way to prepare for their passing, which can be challenging to envision. While life insurance is indeed a smart option to help your family manage finances after your death, there are also plenty of advantages that you can reap today. Here are a few of the top reasons to buy life insurance: Financial emergencies: In certain cases, you may be able to take payouts from or borrow against your life insurance to deal with financial emergencies. For instance, with a Life Credit Living Benefit Loan, you can borrow against the value of your policy’s death benefit to cover financial emergencies such as cancer care. Few people budget for medical crises, but with a life insurance policy, it’s possible to save yourself from going into debt and instead focus on your health. Final arrangements: While it can be uncomfortable to think about, funeral and burial costs are high, and assisting loved ones with making your final arrangements is one of the most common reasons to buy life insurance. No one wants to burden their family with financial responsibilities while they’re alive, and life insurance helps you to continue that commitment after your death. Affordable coverage: Despite what some may think, life insurance can be extremely affordable. The wide range of options when it comes to life...

Top Items Cancer Patients Want in a Care Package

When someone is battling cancer, his or her loved ones may feel helpless, as they want to guide their family member or friend through the ordeal but often don’t quite know exactly what the person needs. Lending a listening ear, providing day-to-day help with household chores and cooking meals are all good ways for supporters to step up to the plate. Care packages for cancer patients are another means of showing your love and support. Assembling an assortment of day-to-day items patients may need—plus some extras just to make them smile!—shows them you understand how much their daily routine has been transformed by the diagnosis. And since care packages for cancer patients can be delivered in person, brought to a healthcare facility or shipped anywhere in the world, you can be there for your loved one, whether the patient lives next door or several states away. Here are a few of the most common items that supporters incorporate into care packages for cancer patients: Water and snacks: Chemotherapy and other treatments can dehydrate the body, so it’s important for patients to stay hydrated during their sessions. Such treatments can be time-consuming, so loading them up with healthy snacks can help pass the time and satisfy cravings. Warm blankets: Hospitals are notoriously chilly, so gift your loved one a warm blanket, fuzzy socks or a comfy sweatshirt for their visits. Headgear: Hair loss is an unfortunate side effect of treatments like chemo, so care packages for cancer patients undergoing this therapy may include an assortment of hats and scarves. Pick colors the patient likes and opt for caps that show...

How is my Death Benefit Calculated?

While each policyholder will have individual circumstances — such as varying numbers of dependents or unique health concerns — there are some common ways to determine what your life insurance death benefit payout should be before you finalize a policy. One strategy is to add together the policy holder’s annual income, the cumulative amount that would be lost if he or she died today (presuming he or she would work through average retirement age) and burial costs. Even though this total may seem high, it allows for a worst-case scenario that would enable the person’s family to continue receiving the financial support this person had provided during life if he or she was to pass away at an early age. Life Insurance Death Benefit Payout Once the desired amount of the life insurance death benefit payout is calculated, you can then shop around to find a plan at that level with affordable premiums and that offers all of the other provisions you’re looking for in a policy. In the event of someone’s passing, the funds can be used to cover final expenses, as well as to address income gaps left by the loss. Once the contract is signed and sealed, if the insured does die, all that his or her beneficiaries have to do is submit a death certificate and some other accompanying paperwork to kickstart the process of receiving the pre-set payout. The funds are almost always non-taxable and paid quickly, giving beneficiaries easy access to vital financial assistance needed to lay their loved one to rest and maintain their financial health. A life insurance policy’s death benefit...

5 Life Insurance Myths

Life insurance can be complex — but part of what makes it so are the misconceptions many have, which may be deterring them from enrolling in a life insurance plan (or from taking full advantage of it). The 5 life insurance myths listed are shared by many different age groups and demographics and have persisted for years, pointing to the idea that better financial education is a must for those who want to protect themselves and their loved ones in case of an emergency. Look through these 5 life insurance myths and, if any of them sound familiar to you, consider learning more about all of the benefits of life insurance—and then explore the best plan for you to get yourself and your family on track to a bright financial future. 1.     You can’t afford it. In a recent study from Life Happens and LIMRA, about 80% of those surveyed overestimated how much life insurance actually costs, a trend that was particularly an issue with younger respondents. For instance, while the actual annual cost for a 20-year, $250,000 policy is about $160, millennials guessed $600, and Generation Xers suggested $400. 2.     You don’t need it until you’re older. Ideally, you or your family won’t need to tap into your life insurance until you’re older, but it’s most cost-efficient to sign up for a policy at a younger age, as prices can increase with age and the onset of health conditions. 3.     Retirement savings is more important. While it is smart to sock money away for retirement, that shouldn’t take precedence over investing in life insurance. Both can be part...

5 Things to Check Before Borrowing From a Life Insurance Policy

If you’ve found yourself in a financial bind because of crippling medical debt, you’re not alone: Financial side effects can be just as serious and severe as physical ones when it comes to life-threatening conditions like cancer. Many cancer patients are in need of quick cash to pay down mounting medical bills, prompting some to cash in or borrow against their life insurance policy. While this is an option for many, there are a number of factors to consider first. Here are 5 things to check before borrowing from a life insurance policy: 1. Will your death benefit be affected? No one wants to leave their loved ones unprotected after they pass, so it’s important to understand how a loan against your life insurance may impact the death benefit you’ve likely long invested in for your beneficiaries. 2. Is there an opportunity cost? Lenders may sneak in a number of added fees, such as this one that refers to the difference between the amount your invested premiums were earning and the amount of interest you’ll be paying. 3. Understand the interest rates. Most life insurance loans range from 5% to 8% interest rate, and it is compounded—meaning you’ll essentially be paying interest on your interest, which might be a deterrent for some individuals in the long term. 4. Calculate your actual payments—and your ability to make them. Factor in interest and determine just how much you’ll be paying back on the loan, and for how long. Add in other expenses and weigh this against your income to determine if borrowing against the policy is a feasible financial decision. 5....