Insurance Services of Washington Blog
Almost everyone will tell you that getting life insurance is a good investment that can save you and your family in the future. But most people are still unaware of how versatile life insurance policies are. Life insurance will not only cover your final expenses, but your family can also use it once you pass. Here are some of the most common uses for your life insurance policy:
Final Costs Payment
Although there is a specific insurance policy for when you pass away, you can also similarly use life insurance plans. Most systems include benefits that your relatives and beneficiaries can use to pay for the final expenses as you pass. It can pay for the cremation or funeral costs, as well as other medical bills that your health insurance does not cover. It can also be used to pay for other unpaid obligations or estate settlement costs.
Income Replacement and Inheritance
One of the common reasons why older people purchase life insurance is to make sure that their beneficiaries and loved ones can inherit something. If you want a specific person to reap all the benefits, you can list the heir as your beneficiary. Just inform the Insurance Information (III) about it.
The benefits of life insurance plans also include claims as to income replacement after you pass away. Your beneficiaries will still be able to receive cash to help them pay for necessities. They can use this money in paying off essential expenses like college tuition or mortgage. They can also use it in paying off credit card bills or car loans that you missed paying.
State Tax Payments
Depending on the state you live in, all your heirs might have to pay for an estate tax once they receive their inheritance. Using life insurance, your heir might not need to pay for state taxes anymore in receiving your property. However, it would still be best to consult a financial advisor or an insurance provider on how this might play out. They have better experiences in handling cases like these, so they would know what they are dealing with and how they can come up with the best solution.
Many people are indifferent when it comes to discussing their possible demise. However, it should be a part of your investments that can help you secure a financial future for your family. Contact an insurance agent today to know more about the terms and conditions of different plans.
At Insurance Services of Washington Inc., we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (425) 868-1123. Get your free quote today by CLICKING HERE.