Consumers buy life insurance policies for many different reasons. Below is a list of the most popular reasons to buy life insurance.
If you own a life insurance policy and are named as the insured person, your beneficiary would receive the death benefit free from federal income tax if you die.
However, if you name your estate as beneficiary, there would be estate taxes to pay on the proceeds from the life insurance policy.
The proceeds from your life insurance policy can be used for any reason by the beneficiaries who are named to receive the death benefit on your life insurance policy.
The main reasons people buy life insurance are because they feel a need to provide financial security for the future of their family, and it also provides a peace of mind knowing your family will be taken care of if you die.
Many families choose term life insurance because it offers the most life insurance protection for the money.
Term life insurance provides life insurance protection for 1-30 years. Most term life policies offer coverage for 10, 15, 20 or 30 years.
If you die during the term of your term life policy, the death benefit is paid to your family (beneficiary).
With term life insurance you get pure life insurance protection, there is no investment feature, your policy does not build cash value inside the policy, it provides only life insurance protection.
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