Why should I buy life insurance in Miami?
Life insurance has been considered to be a fundamental part of a strong financial plan by financial experts. It can be useful in ways listed below:
Income Replacement for dependents
If you have people who are dependent on your income, then, life insurance can substitute that income for them when you are no more. This is very common, especially for families with little children. But, it also works for couples where the survivor would be financially hit by the loss of income arising from the untimely loss of a partner, and also adults who are dependent on others, for example, adult children, parents and siblings who always depend on you for financial help. The income replacement insurance can be very useful if the employer-or government-sponsored aid your surviving partner or spouse will be cut down after you are no more.
Pay final expenses
Life insurance can provide funds for estate administration, probate, debts, medical expenses, funeral and burial costs, which health insurance may not cover.
Create an inheritance for your heirs
Another good thing about life insurance is that, you can come up with an inheritance plan for your heirs when you buy a life insurance policy and state them as the beneficiaries even when you have no physical assets to pass to them.
Pay federal “death” taxes and state “death” taxes
Instead of having your kids or heirs using your assets to pay off debt, life insurance benefits can help fund the estate taxes. Between now and January 1, 2011 the modification in federal “death” tax rules will possibly reduce the effect of this tax on a few people, however, a few states are compensating those federal decreases with a raise in their state-level “death” taxes.
Make significant charitable contributions
When you decide to pass your life insurance to a charity, you will be able to contribute better than when you donate the money equivalent of the policy’s premiums.
Create a source of savings
Even if it’s not taken as a death benefit, some life insurance can be a cash value that, can be withdrawn or borrowed if the owner demands. Since a lot of people make it a priority to pay their life insurance policy premiums, acquiring a cash-value type policy can help create some sort of “forced” savings plan. Additionally, the interest added is tax delayed (and tax exempt if the money is paid as a death claim).