INFISEGROUP

The economic fallout from the pandemic has heightened concerns about one’s financial future. Many people are focused on the present, and for some, financial planning may seem unattainable due to their current situation.

For example, nearly 80% of millennials surveyed haven’t created a will, with a quarter citing a lack of assets as the primary reason. We understand that circumstances can be challenging. However, having life insurance can be key to establishing long-term financial stability.

Protection for Your Loved Ones and Assets

If you have a family, a partner, or run a small business, other people likely depend on you and your income. Some financial obligations, such as a mortgage, don’t automatically disappear after death.

Despite budget constraints, life insurance policies can provide financial support for your loved ones and help them maintain their financial stability. Among the most affordable options is term life insurance, which can help:

• • Settle a mortgage debt.
  • Cover funeral and burial costs.
  • Keep a small business running during a transition period.
  • Pay off outstanding credit card or loan debts.

Secure an inheritance

Inheriting assets for children is a priority for many people. However, without life insurance, personal assets could be used to pay off debts.

In the event of a death with outstanding financial obligations, the family may be forced to sell material possessions to cover those commitments.

Conversely, a life insurance policy can not only settle existing debts but also provide financial support for the future of children or a partner. This may mean creating a savings fund for college education or purchasing a home.

Estate Planning and Tax Benefits

Balancing retirement savings with other financial responsibilities can be challenging. For many people, making maximum contributions to a retirement fund isn’t always a priority due to daily demands.

There are policies, such as permanent life insurance, that offer a cash value component and even allow for borrowing against the policy to supplement retirement. Additionally, estate planning with life insurance provides tax advantages, such as:

Reduced inheritance tax impact, as life insurance is typically tax-free.
Ongoing financial support for minors or people with disabilities.
Coverage for expenses associated with the probate process.
Balanced distribution of the inheritance among beneficiaries.
Conclusion: A Step Toward Financial Security

Life brings unavoidable certainties, such as taxes and death. Although planning for the financial future of loved ones can be challenging, it is a key decision to ensure their financial stability. As you build your wealth, consider life insurance as an essential resource to protect your family and assets.

Consult with a specialized advisor to learn about the available options and find a policy that fits your needs.