Contemplating what will happen to your family in the event of your passing is not an enjoyable task. It’s important to do thorough research about your options in Tomball, TX before choosing a life insurance policy. Here are the common myths about life insurance and the real facts.
I Only Need My Life Insurance Policy to Be Double My Annual Salary
There are factors to put into consideration. Each individual’s situation is different, and the amount of life insurance you need depends on that. You may end up in a situation where you must pay off debts and be a provider for your family for several years.
Life Insurance Is Not Affordable for Me
It’s common for many individuals to over inflate what a term life insurance policy would cost. Contrary to popular belief, life insurance is an affordable option for nearly anyone. The amount of coverage and the type that you’re seeking will determine the cost. You can set up a life insurance plan that suits your budget and then scale up later on.
I Don’t Need Life Insurance as a Stay-at-Home Parent With No Income.
Life insurance is still essential even if you’re a stay-at-home parent without an income. It’s reasonable to assume that you provide services that would otherwise cost thousands of dollars each year to replace. The tasks that you provide may include daily transportation, cooking, and child care, among others.
My Beneficiaries Will Be Subject to Pay Income Taxes on the Life Insurance Payout
Life insurance payouts are typically income-tax-free and are not required to be reported on your tax return. If you were to pass away, your beneficiaries would not have tax implications on the insurance policy proceeds.
Life insurance can seem mind-baffling and complicated, but it doesn’t have to be. You should not go without life insurance unless you have assets that are large enough to cover debts once you’ve passed away. The experts at the Great Southern Agency of Tomball, TX can help you obtain an ideal life insurance policy that will protect your family and your assets.
Contact Great Southern Agency so that we can guide you through the insurance options.