Life insurance is one investment that no one looks forward to cashing in, but it’s something that most Massachusetts residents should have. If you don’t currently have a life policy, here are several reasons why you might want to get one.
What Are the Reasons to Have a Massachusetts Life Insurance Policy?
Provide for Your Family Members
If you’re a major income provider for your family, life insurance gives you a way to make sure your spouse and/or children will be financially cared for should you pass away in a covered incident.
For many families, losing an income-earning parent would be devastating and result in a major financial crisis. Having coverage won’t minimize the pain of losing you if something happens, but it will make sure your loved ones don’t have to cope with added financial stress during such a difficult time.
Providing for family members is probably the most common reason why people (especially parents) purchase life policies, and it’s one of the most important reasons.
Give Loved Ones a Final Gift
Even if you don’t have family members who are financially dependent upon you, you may still want to give loved ones a substantial monetary gift when you pass away. In addition to leaving your estate to heirs, you can also designate a life policy’s death benefits to be paid to them.
Giving loved ones your policy’s death benefits lets you make one final, major impact on their life. Depending on how large your life policy is, you might be able to pay for a grandchild to attend college, a child to purchase a house or all the relatives to get together at a special location. However the benefits are used, you’re sure to leave a lasting impact and be remembered for a long time.
Make a Donation to Charity
Rather than leaving a gift to loved ones, you can make a substantial donation to charity. Whether you share your intended donation with the charity beforehand or give it as a surprise gesture upon your passing, any substantial donation to a nonprofit is going to be appreciated. Depending on the size of the donation and the charity’s needs, the money might be used to pay off debt, purchase or renovate a building, establish a scholarship fund or for any other purpose.
Moreover, donating to charity doesn’t have to preclude you from providing for loved ones or giving to family members. You’ll likely choose beneficiaries when purchasing a life policy, and you can normally designate what portion of the death benefits each beneficiary receives. Thus, you can give however much or little you want to a charity. You can even give to multiple charities if you like.
Reassure Business Partners
Sometimes, it’s appropriate to get a life policy not for the benefit of loved ones but for business partners.
If you’re an essential employee of a Massachusetts business that you and others own, consideration should be given to what would happen if you passed away. Depending on your role in the business, your partners might have to shut down the business or recruit someone else to take on your role. In either situation, they would suffer a financial loss.
A life policy may help compensate business partners if something tragic happens to you. The death benefits they receive could be used to either compensate them for their investment in the business or to pay an employee who can fill your role.
Talk with a Massachusetts Agent About Life Insurance
These are just a few of the many ways people use life insurance. To discuss why people purchase this type of coverage in further detail, contact one of the independent insurance agents at Scotti Insurance Agency. Our agents have helped many Massachusetts residents evaluate their life coverage needs and find a policy, and one of our team members would be glad to help you.