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Benefits of Life Insurance

Life insurance offers a variety of benefits that can make it a worthwhile investment. It can help protect your family financially in the event you unexpectedly pass away, offer reasonable premiums, and give you peace of mind. Here’s a closer look at what life insurance covers, the benefits it offers, and why it may be worth it to have a life insurance plan.

Why life insurance is worth it

You can think of life insurance as a contract between you and an insurance company. As long as you pay your premiums, the insurance company will give a death benefit payout to your beneficiaries after your death.1

Life insurance can be worth the investment because it can help give your loved ones financial security. Your beneficiaries can use the death benefit payout for any purpose they’d like, such as helping pay off the mortgage or covering everyday bills. They’ll be able to help ease the financial burden that your death may bring and continue to live their lives.

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What does life insurance cover?

Several of the most noteworthy benefits of life insurance include:

Death benefit payout

A death benefit is likely the primary reason you want to apply for life insurance. It’s the amount of money your insurance company will pay your beneficiaries if you pass away during your policy’s term. In many cases, death benefits are issued as a lump-sum payment, but your beneficiaries may be able to receive it in installments if they prefer.

Cash value

Cash value refers to the savings aspect of some types of life insurance, like whole life insurance and universal life insurance. If your policy has a cash value, a portion of your premiums can help fund it. Over time, the cash value earns interest and becomes available for you to access in a variety of ways while you’re still living.


Riders are optional features you can add to your life insurance policy, typically for an extra cost. A rider may help cover life events, such as critical illness, chronic illness, and terminal illness. It can also increase the death benefit in the event of accidental death or provide a death benefit for your child until they’re an adult.

Payouts not taxable

The death benefit paid out by a life insurance policy is usually not taxable.2 This means that if your beneficiaries receive it, they typically can use the money without worrying about taxes. Of course, keep in mind that there are exceptions to this rule you should familiarize yourself with before you move forward with a policy.

What are the benefits of life insurance?

The benefits of getting a life insurance policy include:

Offers loved ones better financial protection

With a life insurance policy, you can feel confident that your loved ones will be better financially stable after your death. They’ll be able to help pay for your funeral and help cover the mortgage, debts, everyday expenses, and other costs.

Coverage can be inexpensive

Factors like your age, gender, health, policy type, and coverage amount will dictate the cost of your life insurance. In general, however, you’ll be able to find a plan that fits your lifestyle.

Some policies come with cash value

Depending on the type of life insurance policy you choose, you may have access to a cash value account. It usually earns interest and sometimes becomes available for you to use as you please. You may withdraw money or take a loan against it.

Applying for a policy is easy

You can apply for a life insurance policy quickly, often online from the comfort of your own home or office. All you have to do is share some personal information and answer a few questions about your health and lifestyle.

Helps give you peace of mind

Life insurance can help reassure you that your loved ones will be okay financially in the event of your unexpected death. They’ll be able to grieve and focus on their futures without a huge financial burden on their plate.

Which life insurance policy is right for me?

A few types of life insurance you might want to explore include:

  • Term life insurance: With term life insurance, you pay premiums for a set period of time, usually between 10 and 30 years. Your coverage ends once this term is up. This type of policy usually has a lower premium.
  • Whole life insurance: This permanent life insurance policy provides coverage for the rest of your life. For this reason, it typically comes with higher premiums than term life insurance.

Aflac life insurance offers many benefits

Life insurance can offer many benefits, from inexpensive coverage to financial security for your loved ones. Now that you know what life insurance covers and have a better understanding of its benefits, you may be wondering which policy is worth getting. Aflac offers enhanced term and whole life insurance plans that can help you and your family meet your financial goals. We also offer final expense whole life insurance to help loved ones prepare for end-of-life costs.

Life insurance may be worth it if your loved ones depend on you financially and may benefit from additional financial support later on. Chat with an agent today to explore your life insurance options and get a quote.

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