Life insurance benefits have an important place in a person’s overall financial planning. While it may be quite uncomfortable to discuss, life plans are an important matter to include in your overall plan. Without insurance coverage, the loved ones you leave behind may need to alter their lifestyle drastically should the unexpected occur. Life plans provide funds and income for your dependents and can be used for many other needs not only of your family, but also of your business. Over time, life plans have come to be an important component of financial, estate, and business planning endeavors.
To many people, life insurance is nothing but a way to provide for the needs of surviving family members in the event of an income provider’s death. However, these policies also provide a means to pay off debt and the decedent’s final expenses, including unpaid medical bills, funeral costs, and even mortgage expenses on the family home. Proceeds of life plans can also fund for the future education expenses of the insured’s children and other dependents, as well as to pay off estate taxes so surviving loved ones won’t have to sell assets below their market value only to come up with the required estate tax. This ensures that your family heirlooms, important properties, and assets remain intact and stay within the family.
Life insurance policies can also be a means to even out inheritance. If for example, an individual has two children and wishes to leave the family home to one child, he could acquire a insurance policy with the equal amount as the home’s value and name the other child as the beneficiary, so each child can receive a relatively equal value of inheritance.
A lot of people also use their life plans to give to charity. Choosing a charity that is closest to your hart as a beneficiary of your life plan allows you to provide tax-free proceeds to a cause that you care about. Life insurance plans may also be used for business. In most cases, they are offered as an employee benefit. However, business owners may also use their life plan to continue their company even after they have passed. This kind of arrangement works best in partnerships wherein owners of the company purchase insurance on each other’s lives so that when one of the partners dies, the other owner—who is named as the beneficiary of the policy—can use the insurance proceeds either to keep the business running.
North Carolina based The Jordan Insurance Agency is a leading provider of health and life plans, along with other types of insurance policies for individuals and businesses. We offer a wide range of insurance packages from some of the most established insurance companies in the business. We have been working with the best insurance providers for the past 8 years, giving clients access to the best policies that suit their needs. We serve different areas throughout North Carolina and neighboring states.
