Financial Security, Beneficiary Designation, Asset Protection, Mortgage Protection, Income Replacement.
The primary goal of life insurance is Financial Security. In the event of an untimely death, a robust policy ensures that your family can maintain their standard of living. This includes Income Replacement, which covers daily expenses, and Mortgage Protection, ensuring that the family home remains theirs.
When setting up a policy, Beneficiary Designation is vital. You must clearly define who receives the proceeds to avoid legal complications. Life insurance acts as a shield, preventing your family from depleting their savings or selling assets under pressure. It provides immediate liquidity, allowing survivors to settle debts and funeral costs without financial strain.