From keeping official commitments, making EMI payments and paying schools fees of kids to bearing medical expenses of the family, life has become so complicated today. You work hard every day to make the ends meet and keep a track of all the duties to perform but have you ever thought how family’s life will be without you? Nobody wishes this to happen but a day might come when you won’t be around and your loved ones might have to struggle to take care of their daily expenses. If you are at a job or run your own business and suddenly pass away, your family will need a financial assistance to take care of the essential expenses till they find a job for themselves or think about their business continuing plans.

Life insurance plans bring this much-needed financial assistance to your family. Various benefits included in the life insurance policies provide a financial security against the unfortunate events of life and help the family cope with the loss occurred. In this blog, we are going to mention the various benefits and explain why life insurance plan has so much importance in our daily life.

Replace Your Income and Pay the Loans

To provide a better lifestyle to the family, you take loans such as home loan, car loan and pay the EMIs every month but who will take care of these installments along with the daily expenses after you leave. The death benefits in life insurance plans are decided by keeping all these things in mind and take care of the loans you’ve taken. The offered lump sum amount helps your family to pay off the loans, mortgage and secure a good education for kids.

Meet Your Social Goals

You can also meet your philanthropic goals with a life insurance policy. If you are more of a social worker and love to spend more on making the society a better place to live, you can still utilize life insurance to realize your dream to help needy people and improve their lifestyle with the insurance benefit. You can name the charity organization of your choice as the beneficiary and the insurance benefits will be given to them, no matter how big or small is the amount.

Pay for Funeral Expenses

No one can predict what may happen tomorrow and a life insurance plan will help you with a lump sum amount as the death benefit in case your loved one passes away. You can utilize the offered amount to take care of funeral expenses which aren't as cheap as it’s considered. Usually, a funeral ceremony ranges from $7000 to $10000 and the cost may increase if customized. Life insurance takes care of the funeral expenses and helps you pay remember and honor your loved one in an appropriate way.

Offset the Taxes on Benefits

Different states have different tax norms for the death benefits received. Your loved ones also may need to pay the taxes on the amount they will be receiving. But there are life insurance policies that can partially or completely save your loved ones from paying the taxes. Before buying a life insurance plan, you are suggested to meet an insurance expert to discuss all the possible scenarios to offset this tax. An insurance expert will help with the most suitable options depending on your state and insurance benefit.