Debt is an expensive and restrictive burden to carry. The interest rate and fees tied to your various credit cards and loans increase the cost of your purchases and tie up your hard-earned dollars for years, sometimes even decades. This reduces the effectiveness of your money and can work to delay your ultimate financial goals.
Believe it or not, there are many different insurance policies that can actually help you get out of debt and stay out of it. Take a look at the ways these policies give you freedom from future debt and help keep your current debt in check.
The only way to get out of debt, besides bankruptcy, is to pay off what you owe. If you lose your income after becoming disabled you may not have the luxury of paying your debts any longer. You may get disability payments through Social Security but there's no guarantee that you will be approved and you may need to wait longer than you can afford for benefits to begin.
A disability insurance policy has a waiting period of your choice and can ensure an income even during short-term disability that would be ineligible for Social Security. This means your income won’t stop for an excessive period and you can continue to pay off your creditors.
It’s next to impossible to pay off your own debts when you damage another person's property or cause them bodily injury and are responsible for payment of their expenses. Liability insurance through home, auto and umbrella policies can ensure those claims are paid without taking valuable income from the repayment of your own credit obligations.
Preventing Property Losses
Should you suffer a loss of property such as your home, car, furniture, personal electronics and so on, you might need to dip into your personal funds in order to replace them. Not only could that take much-needed dollars away from debt repayment but it could even result in the creation of additional debt as you try to find the means to replace your property.
A life insurance policy pays out a death benefit to your heirs that can help them pay off debts after your death. But life insurance policies aren’t just about death benefits; your policy may have living benefits such as a terminal illness accelerated benefit or dismemberment benefit that provides access to a portion of your death benefit during your lifetime. You might even consider a return of premium rider on a term insurance policy. At the end of the term, when you get back the premiums you paid in, you could use the funds to reduce or eradicate your debts.
Allow us to help you better control your current and future debt with the purchase of various insurance policies. Give us a call at Glory Insurance Group today to get started.