Mark Glendon

Why You Should Have a Life Insurance Policy

Thinking about your death isn't exactly the most fun way to spend an afternoon, but planning for your passing is an important part of ensuring your loved ones are taken care of. For many people, life insurance plays an integral role in estate planning, but life insurance is about more than just leaving behind some money for your family.

Whole Life Policies Build Value

Although term life insurance is a popular option for protecting your family upon your passing, whole life insurance is a product that can build value. With whole life insurance, sometimes known as cash-value life insurance, you can take cash out of the policy within the limits of your agreement. By leveraging the growing value of your life insurance investment, you may be able to pay off high-interest debt or take care of other important financial obligations.

In some cases, you may also be able to use your life insurance policy as collateral for taking out a mortgage or other large loan. This may open up additional possibilities to earn money if you can use this type of loan for an investment.

Protecting Against Loss of Income

Aside from giving an immediate cash benefit to your loved ones upon your passing, life insurance also supplies money to replace the loss of income that may be a result of your death. For many families, budgets are set based on the amount of income earned by each adult member of the household. An unexpected loss of one of these income streams could put a lot of strain on the ability to pay bills and meet other financial obligations. Life insurance money can replace some of this loss and make life easier for those left behind.

Work With an Estate Planning Lawyer

No matter how you decide to pursue life insurance or why it's always a good idea to work with an estate planning lawyer before making any big decisions. You'll want to look locally for these types of attorneys, as different states have different regulations regarding insurance products.

For example, in New York City, an NYC estate planning lawyer will be able to guide you through New York's various insurance laws. Your NYC estate planning lawyer can also help you evaluate insurance products to find the right policy for your specific needs and plans.

Author Resource:-

Mark writes often about estate planning. His articles may include topics like real estate closing attorney and business succession laws to help the people in needs. You can find his thoughts at estate planning services blog.