Using Life Insurance To Ensure A Financially Secure Future

Are you looking to protect your family’s future and ease your financial burdens? Are you familiar with life insurance plans in Texas?

As a life insurance policy beneficiary, you would need to file a claim after which you would receive any money due to you. Beneficiaries can decide whether they want the amount in one go or whether they prefer to receive it in parts over several years, in terms of annuity.

Here’s a look at the major benefits you and your family can expect from a life insurance payout.

Manage bill payments

On top of costs for final arrangements for the deceased, beneficiaries may face certain unanticipated expenses. For instance, if the deceased was a stay-at-home caregiver, various costs like meals, child care, and other domestic expenses would come into play. Your life insurance policy payment would cover or finance these aspects, thus supporting your family’s wellbeing.

Save for retirement      

Typically beneficiaries who are married have retirement plans based on the financial funds that both spouses have contributed to.  The funds from life insurance plans Texas can be used to continue payment of their part of the contribution to the retirement plan. Surplus amounts can be used to contribute to an IRA as well as to pay maximum yearly contributions to workplace plans.

Setting up a steady income stream

Rather than opting for your life insurance benefit in a single go, it would prove highly beneficial to receive a series of payments made at intervals over several years. This way you wouldn’t have the stress of managing a large sum and will instead get a steady stream of income over an agreed upon amount of time. Annuities can also be planned in a way that payments occur over the beneficiary’s entire lifetime.

Clearing debts

Paying off debts can be a great relief, particularly for grieving beneficiaries. On top of debts you have personally run up, you may be legally bound to clear the debt of the deceased as well. In terms of jointly held debts or co-signed loans, you would be obliged to pay off those debts.  As a beneficiary, you can use life insurance to pay off the deceased’s debt without any hassle. To know whether any debt is inherited or not you would need to check the laws of your state.

While nothing compensates for the loss of a loved one, falling back on life insurance benefits can minimize financial stress when you are already facing emotional exhaustion. It’s crucial to include a robust life insurance policy to your portfolio of investments as this will offer your spouse and family much-needed financial security. Study the life insurance plans Texas available to you and thus ensure you’re making sound financial decisions that will meet your goals.