Insurance can be confusing and it’s hard to know what you really need or want. Here are five reasons why you need life insurance.
As you grow older, get married, build families, and start businesses, you come to realize more and more that life insurance is a fundamental part of having a sound financial plan. Depending on your type of policy, life insurance could be possibly inexpensive, which means there’s no excuse not to get coverage now. Plus, over the years, you’ll find comfort in knowing money will be available to protect your loved ones in the event of your passing. Here are a few other reasons why having life insurance is important.
To Protect Your Family and Loved Ones
If your loved ones depend on your financial support for their livelihood, then life insurance is irreplaceable, because it replaces your income when you are no longer there to provide for them. This is especially important for parents of young children or adults who would find it difficult to sustain their standard of living if they no longer had access to the income provided by their partner. You will also need to provide enough money to cover the costs of hiring someone to cover the day-to-day household tasks, like cleaning, laundry, cooking, childcare and everything else a growing family needs. Whether you’re working a job, an entrepreneur or self-employed, you will need life insurance as potential income replacement in the event of your passing.
To Create a Legacy
Even if you don’t have any other assets to pass to your heirs, you can create an inheritance by buying a life insurance policy and naming them as beneficiaries. This is a great way to set your kids up for a solid financial future and provide for any monetary needs that will arise. Even though you may not be around to witness it, your life insurance policy could tremendously help your future generations in their financial endeavors.
To Pay Off Debts
In addition to providing income to cover everyday living expenses, your family needs insurance to cover any outstanding debts, like the mortgage, credit card debt, and car loans. Other expenses include funeral and burial costs that can easily run into the tens of thousands of dollars. You don’t want your spouse, parents, children or other loved ones to be left with any extra financial burden in addition to the emotional agony they’re already suffering.
To Add More Financial Security
Like most parents, you probably want to know your kids will be well taken care of when you’re gone. You not only want them to get a quality college education but to provide for other life ventures like getting married or starting a business. For this reason, additional coverage is vital while your kids are still at home.
To Bring Peace of Mind
You can’t know when you’ll pass. It could be today, tomorrow, or 50 years from now, but it will happen eventually. No amount of money could ever replace a person. But more than anything, life insurance can help provide protection for the uncertainties in life. Without a doubt, having life insurance coverage will bring you and your family peace of mind. It’s one thing you can be sure of and you’ll no longer have to question whether they’ll be taken care of when you’re gone. Life insurance protects your heirs from the unknown and helps them through an otherwise challenging time of loss.