Why You Need A Life Insurance Policy Today

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Are you the kind of person who plans ahead for the future? Do you have saving set aside for your retirement so you can live comfortably? Plenty of people start planning to retire even when they are relatively young. They know exactly where they want to live and what they are going to do with their free time once they no longer have to work. But far fewer people actually plan out what would happen if they were to succumb to an accident or illness. If you're one of these people, here are some important reasons why you should think about purchasing life insurance from places like Daniel L. Rust Insurance as soon as possible:

Funeral expenses: You may surprised at how much a funeral actually costs. Right now, the cost of an average funeral is between $6,000 and $10,000. But, like everything else, that cost is always going up. You could start saving for a $8,000 funeral today, only for your relatives to find out in a few decades that your funeral will actually cost almost twice that. A good life insurance policy will help make sure your family will have money to cover your funeral costs, without you needing to set aside excessive amounts of money right now.

Lost wages: If you are taken by a sudden illness or a car accident, your family will have no way to prepare for the inevitable loss of income that will occur. Your dependents could struggle for some time to recover from the financial blow that happens as a result of your loss. Fortunately, a substantial life insurance policy will help ensure your family has more time to prepare. Your spouse or other relatives can use the financial cushion provided by the life insurance money to look for a better job or to make other living arrangements.

Medical expenses: Did you know that a life insurance policy can be sold to someone else? If you have been paying on your insurance policy for decades, your insurance policy will eventually start to accumulate a cash value that you can redeem from the insurance company or that you can borrow against. But, if you have substantial expenses and you need more money now, there are also people who will purchase your policy from you. The amount of money you can get will depend on a variety of factors, but it should be somewhere between the current cash-in value of the policy and the full value of the policy. The longer you've been paying on the policy, the more money you're likely to be able to get by selling it.