Four Reasons to Buy a Life Insurance Policy as a Christmas Gift
When searching for the perfect Christmas gift for a loved one, a life insurance policy may not be the first thing that comes to mind, but it might be exactly what they need right now. Despite how unusual this gift idea may seem, life insurance offers tangible benefits that other gifts might not. Here are some reasons to compare life insurance quotes for your next Christmas gift this year.
It Can Provide Peace of Mind in Case of an Unexpected Tragedy
Life is unpredictable, which is one reason why life insurance isn’t just meant for older individuals. Providing a family member of any age with a life insurance policy can help them prepare for an unexpected tragedy. Their family will be taken care of and have the funds they need to pay for funeral costs, college tuition, and general living expenses when they’re no longer around.
Life Insurance Policies are Affordable
Purchasing a life insurance policy as a Christmas gift is much more affordable than you might believe. In fact, the average price of a life insurance policy is around $26 per month.
One thing to remember is that term life insurance is oftentimes more affordable than whole life insurance. On the other hand, term life policies have fewer benefits. If you purchase whole life insurance, you’ll be able to provide your loved one with a policy that builds up “cash value,” which can be used as an emergency fund for practically anything.
Policies Can Be Customized to Fit the Recipients’ Needs
A great feature of life insurance policies is that they can be customized to fit the recipient’s needs. If you purchase whole life insurance, you can select among three options on how the policy’s cash value will be accessed.
These options include a policy loan, a preferred loan, and a partial withdrawal, the latter of which becomes available after one year. Eligibility for a preferred loan is available after ten years.
You can also add riders to a life insurance policy for extra benefits that fit the person’s specific needs. Some common life insurance riders include:
- Accidental death benefit
- Disability income
- Children’s term insurance
- Waiver of cost
- Accelerated death benefit for a terminal illness
- Unemployment waiver of cost
Allows You to Give a Unique Gift
If you’re shopping for someone who has everything and find it challenging to find something unique or special for them, consider a life insurance policy. It’s unexpected but worth so much more than anything you can wrap up with a bow. It’s also a rare gift that doesn’t lose value over time. With the right policy, the value of your gift could increase as the years pass by.
The Bottom Line
If you’re thinking about giving someone special a meaningful gift this holiday, a life insurance policy should be at the top of your list. There are several policies to choose from that are affordable and can be customized to their specific needs. The recipient of your gift will also be more confident that their family is protected in the event of an unexpected death.
