Life insurance is something that everyone needs, but they don’t have it. When you are healthy and young, it is quite easy to put off the decision of buying a policy. But, the longer you wait, the higher the chances of something happening before you have the appropriate coverage. If you are unsure of whether to buy life insurance or not, here are excellent reasons to consider doing so:
Reason 1: Replace Lost Income
After you pass away, life insurance can provide financial benefits and security to your loved ones. You need to think about how your family would manage if you were to die suddenly. This is especially important when you are the sole breadwinner. When you buy adequate life insurance, you will not leave your family helpless after you.
Reason 2: Deal with Burial Expenses
Sadly, you require several thousand dollars for having even a basic funeral service. Prepayment for funeral is possible, but not many people will think about it that much. With prepayment, you can ensure that everything is in place and when you die, your loved ones don’t have to deal with anything. But, prepayment comes with its risk, so it is better to opt for life insurance as it is a better guarantee and lifts the burden of burial expenses from family members.
Reason 3: Pay off your Debt
When you die, your debts don’t magically disappear. If you have co-signed a mortgage or loan with your spouse, they will have to deal with the entire burden of debt. This could become a problem because creditors will start eying your estate and your loved ones will not be left with a lot later on. When you buy life insurance, you give your loved ones the opportunity of paying off all your debts and financial obligations without any issues.
Reason 4: Planning for College
There are numerous ways that you can use for saving money for your child’s education. Not many people give any thought to life insurance policies for this purpose. But, the payouts you get from insurance can actually be an excellent supplement for your savings. If your child has to take out student loans to pay for their education, the life insurance policy payout can be used to pay them off.
Reason 5: Develop Cash Value
One type of life insurance is term life insurance, which stays in place for a specified time period. This is not the only option available to you. You can also consider whole life insurance, which gives permanent coverage and only ends when the policy is cancelled. The best thing about this kind of life insurance is that it will build cash value slowly over time and this can definitely be an attractive prospect for a lot of people. The cash value works as an extra cushion that you can use any time when there is a problem. This can be useful in case there is a financial emergency to deal with.
These are great reasons for you to buy life insurance and it will definitely give you peace of mind.