No one wants to think about death. It’s a difficult subject to discuss, and most people will want to avoid the subject altogether. However, death is a natural part of life. It is not often that people know when they are going to die, and because it is a mystery, it is something we don’t plan for.
Unfortunately, it is something we must plan for. While we may not know when it is going to happen, it is important to have plans in place in case the worst should happen.
This is where life insurance comes in. Life Insurance is an agreement between a person and an insurance company where, if the insured person dies, the money will be paid to a beneficiary (someone who would receive the money, like a spouse or family member). Life Insurance is not a policy most people think to have, but they should. With so many options available for life insurance, you can find a policy that works for you, regardless of your situation.
If you are still unsure about life insurance, or even if you’ve never thought about it – here are 7 reasons you should buy life insurance.
It’s One Less Thing for Your Loved Ones to Worry About
In the unfortunate case that you die, you will be leaving behind loved ones. They will be dealing with a lot, and the last thing they should be worried about is money. Life Insurance guarantees that your loved ones will receive money in the event of your death. This is especially important if you had a job and that income was supporting your family. Now, even without that income, life insurance will help them financially.
It Can Pay Off Debt
Unfortunately, debt doesn’t go away in death. If you leave behind any debt, life insurance can significantly reduce or even pay off the debt so your loved ones will not have to worry about it. Between funeral expenses and planning for the future, you don’t want your loved ones to have to be dealing with the added level of stress that comes with paying off debt.
It Creates Cash Value for You
There are two types of life insurance – term life insurance and whole life insurance. Term life insurance is only active for a specific timeframe (months, year, etc.). Whole life insurance stays in place until you cancel the policy. Whole life insurance also builds up cash value, and you can withdraw from this cash if needed. This way, you can have an emergency fund of cash you can pull from in emergencies (that do not involve your death).
It Can Come at a Discount
Odds are the insurance company you already work with for car or home insurance also offers life insurance. Combining your insurance options (like a car, home, and life insurance) may grant you a discount instead of using separate companies for the same thing.
It is Affordable
Life insurance used to be much more expensive than it is today. If you are relatively healthy, do not have any pre-existing conditions, and do not smoke – your life insurance premium (how much you pay every month) will be low. Some options would cost you anywhere from $15 to $30 a month (which is about $1 a day), which is a small investment to make for a large return. Especially when we are living in these uncertain times with a pandemic, paying $1 a day to ensure a financially secure future for your family is more than worth it.
It’s a Protected Asset
One little-known fact about life insurance is that it is a protected financial asset for you. So, if you have to file for bankruptcy – lenders (banks, credit card agencies, etc.) cannot go after your life insurance. You won’t ever plan to file for bankruptcy, but if you do, you’ll know you will still have this money after everything.
It Creates A Feeling of Peace and Security
Having life insurance can create a feeling of peace and security. You will know that, even if you die, you will be leaving something behind for your loved ones. Now, having life insurance doesn’t mean you need to go live life on the edge – it just means that you don’t have to worry about your loved ones’ financial situation if you die. Life insurance provides clarity and calm by the knowledge that you will be caring for your loved ones, even after death.
The most important thing to remember about life insurance is that it is not about you. Life insurance is about taking care of your loved ones when you are not able to anymore. You can’t plan on death, but you can plan on making sure your loved ones are taken care of if you die. The affordability and security of life insurance have made it a key thing that everyone needs in their lives.