There are many types of insurance, a plan to cover your home, your car, belongings, and even your life. A lot of young adults don’t understand the importance of life insurance. They also don’t understand the benefits of owning a policy and how they can help you and your family.
Life Insurance Can Help When the Unexpected Happens
Much like other insurance policies, life insurance protects you and your family from an unexpected death. In most cases, the policy can be used to help pay for funeral expenses and burial costs. Many people are unaware that funerals can cost up to tens of thousands of dollars.
Life insurance could also help cover loss of income due to death. The money can be used for living expenses and domestic tasks that may need to be hired for assistance.
Life Insurance Can Pay for School
Life insurance could also help you with sending children to college. Like any parent, getting the best education for your child is very important. But with tuition costs going up every year, some financial assistance can be very useful.
If you own a business with a partner, Life insurance is a great way to protect you or your business partner from one or the others death. The reason for this is if your business partner were to die, you may need the money from life insurance to buy out the others share in the company.
Your insurance can also be used to pay off any outstanding debt. This would include a mortgage and car loans.
Inheritance tax, depending on the state you live in, can be high. Pennsylvania for example is 0 percent when transferred to a living spouse. 4.5 percent when transferred to a living heir, or direct descendent. Any money given to a sibling can be taxed at 12 percent.
There are many different options to choose from when buying life insurance. It’s best to sit down and talk to your loved ones about what would happen if a sudden death occurred. At Katten Ferretti Insurance, we want your family to be taken care of if anything were to happen. Give our office a call today and see what our options are and how we can protect your family from a financial burden.