What would your family do if you were no longer there to help support them? For many families throughout the country, this is a question that is sometimes asked too late. Maintaining a way of life can become extremely difficult after the death of a spouse or partner — not just emotionally, but financially as well.
But did you know that life insurance also plays a role in our communities and national economy?
Reduces Poverty Levels
Losing a loved one is hard enough without the added stress of associated financial hardship. Life insurance can help ease that burden. Payouts from life insurance policies can provide essential financial resources to help lift a family out of poverty or prevent them from entering into poverty altogether after the death of a loved one.
In 2018, the life insurance industry paid out more than $120 billion to beneficiaries. These payouts are designed to help families maintain their current way of life while they adjust to their new reality — helping to pay for everything from mortgages and estate taxes to child care.
Increases Home and Neighborhood Value
No one should be forced into making life-changing decisions while grieving the loss of a family member. In many households, this sudden loss may mean uprooting a family altogether to somewhere more easily supported by a single income.
With the help of life insurance payouts, families can take their time when deciding whether to relocate due to loss of income – while still being able to make necessary repairs and keep up with maintenance. Homes that have been properly maintained and cared for over the years not only result in higher property values, they also increase desirability of the overall neighborhood.
According to Prudential’s The Socioeconomic Impact of Life Insurance 2017-2018 report, “a $1 permanent increase in payouts results in a 47-cent reduction in federal spending on poverty and unemployment programs — plus a $22 increase in the aggregate value of home prices.”
Taking the Next Step
Are you interested in taking the next step to help protect your family?
Our licensed benefits counselors are standing by to help whether you are ready to enroll or have a few questions first.
To learn more about term life insurance, or the other benefits and services available to members of the Washington State Bar Association, please visit wsba.memberbenefits.com/term-life-insurance/.