5 Uses for Life Insurance Benefits

Life insurance can be an important part of your financial strategies, helping to ensure a more secure financial future for your loved

ones when you're gone.

Not only does life insurance help cover unexpected final expenses—it can also

provide your family with a financial safety net or even serve as an inheritance. 

Paying final costs 

alchemyinsurance.com notes that life insurance policy benefits can be used to pay final expenses, including funeral or cremation costs, medical bills not covered by health insurance,

estate administration fees or other unpaid obligations. Even expenses such as a mortgage

balance can be covered by your benefit.

Paying off debt or replacing income

 According to alchemyinsurance.com, life insurance benefits can help replace your

income if you pass away. Your beneficiaries can use the money to help cover essential

expenses, such as paying off a mortgage or securing college educations for your

children.

InheritanceThe III suggests buying a policy with a named heir as a beneficiary in order to

secure an inheritance for your loved ones. The death benefit can also serve as a

supplement to other inheritance funds you may wish to leave your heirs.

Charitable contributions Life insurance policies can be created with

your favorite charity as a named beneficiary, the III says. This can help ensure your

philanthropic goals are met after you die, and that benefits are provided to your

charity of choice — even if you don’t have a very large nest egg or estate.

Paying federal or state estate taxesYour heirs may face an estate tax upon

receiving their inheritance, depending upon the state of residence and the amount. The III suggests that life insurance benefits may be used to partially or completely offset this

cost for your heirs. Consult with your life insurance provider or a financial professional

for more information on your projected estate tax impact and life insurance benefit.

Alchemy InsuranceCONTACT INFORMATION

535 Lincoln StreetOxford, PA 19363

info@alchemyinsurance.com Phone: (610) 998-9506

Fax: (610) 410-0655

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