Life insurance is something that everyone needs, but in reality, far too few people have it. It’s easy to put aside the thought of buying life insurance when you’re young and healthy. In reality, however, it’s something that you have to get as soon as possible, even if you’re just in your 20s. This is because the sooner you have it, the more coverage you’ll have.
On the other hand, the later you get it, the more useless it will be in the future, especially when you’re already older. But maybe buying life insurance has been on your to-do list for a while, and now you’re considering it but looking for a reason to. Luckily for you, in this article, we will discuss some reasons why you should buy life insurance right now. Here are some of them (see Life Insurance Digitalization and Core Modernization Survey).
Replace Lost Income
Whether you have a steady 8-5 job with a steady income, are self-employed, or own a small business, your income might already be enough for your family’s daily needs.
From housing, car loans, rent, and groceries to your utility bills, these expenses might have already been a part of your monthly budget for a long time. Or even better, you might already cover all of these bills and still have some chance to have fun.
But what if you suddenly lose your job, business, or clients? What then? That’s what happened back during the COVID-19 era, and unfortunately, many people were hit with unemployment and lost most of their income instantly. It’s a terrifying thought but easily solved by life insurance (see Why Female Millennials Are Often Left Out of the Life Insurance?).
With the right coverage in your life insurance, you can replace your lost income whether you lost your job or business or one of your breadwinners died. It’s a grim thought, but if you want to ease your worries about losing your income, then life insurance is the key.
It Can Pay Off Your Loved One’s Debt
All of us are paying off some debt in our lives. Of course, unless you’re already rich enough to pay them off. However, even if you die, some types of debt don’t get dissolved; worse, they might even be transferred to your loved ones. With a sudden loss of income due to your death, they might have difficulty paying them off (see Largest Life Insurance Companies in United States).
Life insurance can help your loved ones pay these debts you left behind, whether it be credit card debt, personal debt, or even business debt. At a time when your loved ones are dealing with your loss, you don’t want them to worry about the debt you left behind too.
Cover Burial Expenses
Burial expenses aren’t cheap. It can go up to a thousand dollars, not including some of the expenses you’ll have for your guests. Fortunately, you can prepay for your funeral, but that will be another expense, so why not include that in your life insurance?
Life insurance can give your loved ones more of a guarantee with the expenses and more than pre-paying for your funeral, not to mention that life insurance is more versatile because of the different coverage you can have.
Life insurance might be the last thing on your mind when discussing your kids’ college expenses, but it is true. Life insurance can be viable if your kids are going to college soon, especially if you already have a lot saved in your account. So instead of going for student loans, you can get funding from your life insurance.
Build Cash Value
Most of the time, people go for term life insurance, which stays in place for some time. However, there are also other options for life insurance which would only get canceled if you cancel the insurance yourself.
Whole life insurance allows you to build cash value over time, which is an attractive prospect for many people.
This is even better if you’re planning to while you’re still young, as you’ll have a lot of time to build up that cash value. Now, this cash value can be tapped at any time, which is very convenient if you encounter an emergency in the future.
If you’re maintaining an estate, you’re probably planning to leave it to an heir. However, once they receive it, they’ll also be required to pay estate and inheritance taxes. If you’re worried about your loved ones paying these off, then you can use your life insurance to pay off these taxes and funding for its maintenance in the future.
Life insurance is something that all of us should have, but only a few of us have it. Some people deem life insurance as something unnecessary. But this is far from the truth. If you’re looking for your loved ones to be financially secure in the future, then life insurance is the way to go.
by Yana Keller