Life Insurance: The Perfect Gift for Your Loved Ones This Holiday Season
As you look forward to placing gifts under the Christmas tree and watching your loved ones' faces light up with joy, consider one meaningful gift that lasts a lifetime and brings everlasting peace of mind - life insurance.
Find out more below as we discuss why life insurance is the perfect gift for your loved ones this holiday season.
What is life insurance?
Life insurance is a contract between you and an insurer. The policy guarantees that in exchange for the premiums, the insurance company pays a sum of money to beneficiaries after your passing.
You can choose to have the money paid as a lump sum to your loved one after you are gone, in installments over the life of the beneficiary, or other payout options.
Why does life insurance make a meaningful gift this holiday season?
Rather than give gifts like gadgets that will become outdated or those they will outgrow, opt for a present that provides long-lasting value. With life insurance, you are giving a gift that can be used for many things.
At a time when you're no longer there to provide for them, your loved ones can use the benefit to cover funeral expenses, mortgage payments, college tuition, and other essential expenses. Some life insurance builds cash value over time, which you can use to fund your retirement dream.
Life insurance is not as expensive as many think. This is particularly true when buying for minors and young adults. When you purchase life insurance for your children when they are young and healthy, you lock in lower premiums.
Even when they become adults or develop a disqualifying ailment, they keep enjoying lower insurance rates.
Peace of mind
The loss of a financial pillar can be a source of concern to your loved ones when you pass away. They will worry about how to pay the funeral expenses, which is around $8,093 in PA.
Your loved one will worry about keeping up with mortgage payments and paying your children's college fees. The gift of life insurance gives both you and your loved ones peace of mind, knowing they are covered when death comes knocking.
How do I buy the gift of life insurance?
Buying life insurance departs from navigating the shopping mall in search of ideal gifts and joining the long checkout queue. Here's how to buy the gift of life insurance for your loved ones this holiday season.
How to know the policy to buy
Selecting the right policy requires considering factors like your financial situation, your loved ones' needs, current incomes, and potential future earnings. Also, factor in their assets, if they have children or plan to, and debts they may owe.
Information you need to purchase a policy
You can take out life insurance on anyone. However, you need to show that it will impact you if the person you are buying for passes away. This is known as insurable interest.
You will also need to provide information, such as their legal name, address, date of birth, and social security number.
Know that if you're buying for someone under 18, your minor daughter, for instance, you will pay the premiums until you can transfer to her when she clocks 18.
Express love and thoughtfulness with the gift of life insurance this holiday season
While you may not be able to wrap it under a tree, life insurance shows your loved one you genuinely care enough to plan for their well-being when you are no longer around.
With life insurance, you give a gift that will remain treasured long after the beautiful fashion wears are no longer trendy. Create lasting memories by gifting life insurance this holiday season. Call us at 717-435-8856 today.