Although it protects your family financially, life insurance is often overlooked. Many people believe they do not require it.
Regardless of popular assumptions, life insurance is extremely vital, especially if you’re a veteran or a military member. After you die, the insurance provides financial stability to your family and ensures that they have enough money to live comfortably.
Here’s why active and past military personnel need life insurance and the benefits and how to obtain one.
Life Insurance Benefits For Veterans
Here are some of the advantages of life insurance for veterans and active military personnel.
1. The payouts are tax-free in most cases
Your family would get the death benefit if you died during the policy’s term due to a covered peril. They won’t have to pay any taxes because taxable income isn’t considered taxable when they file their tax returns.
2. Your family’s living expenses can sustain with the payout.
Choose an insurance plan that pays out ten times your present annual income. Subsequently, your family will have no trouble meeting their financial obligations, especially if they are financially dependent on you.
3. The claim may cover final expenses.
The average cost of a burial in the United States is more than $7,000, putting a significant financial strain on your family. On the other hand, your family can utilize the claim to cover your burial expenses without divint into their funds or taking out a loan if you have the correct policy.
4. Even if you have a terminal illness, you may qualify for a policy.
Some insurance policies have riders, such as accelerated death benefits, which pay out claims in certain situations. Suppose you have a terminal condition and are anticipated to live for 12 months or fewer. In that case, you may be eligible for this rider, which will pay a lump payment to your family when you die and cover your medical expenditures while you’re still living.
5. Retirement expenses may be covered.
If you choose a cash value policy, the cash value will increase with time. You can use the extra cash to buy a new automobile or put a down payment on a house. In reality, you can use the funds to help you get through life once you retire.
Understanding Life Insurance Types
There are two major life insurance types: (1) term life, which covers you for a specified period, and (2) whole life insurance, which offers lifetime coverage. The insurance company will pay the death benefit to the insured’s family, which can be used to cover funeral costs or consolidate debt.
I grew up in Dubuque, Iowa, where I learned the concepts of hard work and the value of a dollar. I spent years in Boy Scouts and achieved the honor of Eagle Scout. I graduated from Iowa State University and moved to Chicago and spent a few years managing restaurants. I then started working in financial services and insurance helping families prepare for the high cost of college for their children. After spending years in the insurance industry, I moved to Arizona and started working with Federal Employees offing education and options on their benefits. I became a Financial Advisor / Fiduciary to further help people properly plan for the future. I enjoy cooking and traveling in my free time.
Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice filed, or is excluded from notice filing requirements. BWM does not accept or take responsibility for acting on time-sensitive instructions sent by email or other electronic means. Content shared or published through this medium is only intended for an audience in the States the Advisor is licensed in. If you are not the intended recipient, you are hereby notified that any dissemination, distribution, or copy of this transmission is strictly prohibited. If you receive this communication in error, please immediately notify the sender. The information included should not be considered investment advice. There are risks involved with investing which may include market fluctuation and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making an investment decision.