While the primary role of life insurance is to provide financial security to your family, it has evolved to offer additional advantages that can contribute to financial growth.
Similar to the versatility of your career, life insurance can play multiple roles, from providing financial security to aiding in financial growth. It can function as a safety net for your family and a wealth-building mechanism during your life. To understand its value, let’s explore how life insurance can benefit you.
Financial Security Through Life Insurance
By naming beneficiaries on your life insurance policy, you can provide your loved ones with financial support directly in the event of your passing while the policy is active. Death benefits, which can vary widely and by amount, provide several levels of protection including:
- Helping maintain your family’s current lifestyle and shield them from financial hardships.
- Safeguarding their savings from being depleted.
- Preventing the forced sale of assets to cover sudden expenses.
- Cover outstanding debts and funeral expenses.
Life insurance helps mitigate the financial stress your family might face during the challenging time of loss and adjustment.
Strengthening Your Legacy with Life Insurance
Beyond immediate financial needs, life insurance can lay a foundation for your beneficiaries including:
- Homeownership by offering your family the stability and security of owning a home.
- Advancement in education by enabling them to use the funds to pursue higher education or specialized training.
- Starting or expanding business ventures by providing the capital needed.
- Covering family planning related costs.
- Supporting career changes by offering the financial cushion required to transition to a new position.
- Engaging philanthropic endeavors, allowing them to contribute to causes they are passionate about and can positively impact their community.
These opportunities not only bolster their financial well-being but also pave the way for the achievements and security of future generations.
Building Wealth with Life Insurance
Depending on your insurance type, you might also accrue wealth in your lifetime. Life insurance comes in two primary forms:
- Term life insurance is time-bound, with fixed premiums and a death benefit paid if you die within the term. These policies are typically more affordable than whole-life options.
- Whole life insurance offers lifetime coverage and accumulates cash value, which can be borrowed against for various financial needs.
Using your policy’s cash value, you can invest in property or businesses, pay off debts, and finance education, all of which can increase your wealth.
Choosing the right life insurance policy can support your family and can also be a means of wealth accumulation to secure a more prosperous future for your loved ones. If you’re uncertain which type of policy is best for you, give us a call. We’re here to help you figure out the best option for your situation and answer any questions you may have.
Cynthia Padilla, Insurance Agent, MBIS (Hollywood Branch)
323.845.4489
cpadi@firstent.org
Maria Okafor, Insurance Agent, MBIS (Hollywood Branch)
323.845.4494
mokaf@firstent.org
Monique Garcia, Insurance Agent, MBIS (Culver City Branch)
323.845.4495
mgarc@firstent.org
Media Benefits Insurance Services
License#0H99393
6735 Forest Lawn Dr., Hollywood, CA 90068
insurance@firstent.org
www.firstent.org
Disclosures
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Insurance services offered through Media Benefits Insurance Services CA Lic#0H99393, a DBA for Media Benefits Corp., which is a wholly-owned subsidiary of First Entertainment Credit Union.
