The Importance Of Life Insurance
“It’s not about what you need; it’s about what your family needs if you aren’t there.” -Eric Wilson
If you are thinking about getting life insurance you may be confused as it is hard to know what you need or want. Having a solid financial plan is important as you grow older, and having life insurance is a key part of this plan.
Usually, life insurance is affordable so there is no excuse not to get coverage right now. There is nothing more comforting than knowing the money will be available to protect and help your loved ones in case you are not there to provide for them.
You have two options when it comes to life insurance term or whole life. Term life insurance provides life insurance coverage for a period such as 5, 10, 15, 20, or 30 years. If you pass away during this coverage period, the insurance company will pay a death benefit to the beneficiary of your policy. If you are still alive when the policy ends, the insurance company pays nothing, and the coverage stops.
Whole life insurance is permanent life insurance that provides a death benefit and accumulates cash value. This policy will end when you die. Another distinctive difference is that you can borrow against the cash value if you need money for an emergency or your beneficiaries to receive it after your death.
Now that you know the difference between both types of life insurance let’s take a look at why life insurance is important.
5 Reasons Why You Need Life Insurance
To Take Care Of Your Loved Ones
If someone depends on your economic support for living, then life insurance is a must, because it replaces your income when you die. This is important for parents of young children that would not be able to sustain their standard of living if they no longer had access to the income provided by their parents.
Keep in mind that stay-at-home parents also need to get life insurance as you need to think about who is going to pay for childcare and home upkeep costs if the stay-at-home parent dies. So, no matter what, both parents need life insurance.
To Have Serenity
The funny thing about life is that we can’t control it and we don’t know when we are going to die. The truth is that it can be today, tomorrow, or 50-years from now, but it will happen eventually. Even though no amount of money could ever replace a person having life insurance can help ease the confusion in life.
It is important to bring you and your loved ones serenity. Having life insurance will help your heirs from the unknown and uncertainty during this difficult time of loss.
To Pay Off Debts
If you have debts you need to have life insurance. Your loved ones will need money to pay off your debts including the mortgage, credit cards, and car loans. Also, other expenses need to be taken care of like funeral and burial costs that can easily add up. After all, you don’t want your family to be left with any financial trouble.
To Provide Financial Stability
If you have kids you want them to be financially secure. Like most parents, you will like your kids to have good a college education or help them open a business. Remember, life insurance is key while your kids are young.
To Leave a Legacy
Even if you don’t have anything else to pass to your successors, you can create a legacy by having a life insurance policy and naming them as beneficiaries. This way you are making sure your kids and loved ones will have a solid economic future for any financial needs that might happen.
As you can see you need to have life insurance to be able to protect your loved ones. We recommend buying a life insurance policy for 10 to 12 times your annual income. This way your income will be replaced if you pass away.
Don’t forget to get life insurance for both parents to make sure your family is covered no matter what happens.
Remember, the best time to buy life insurance is when you are young and healthy, so make sure to do it today!