Ten Important Reasons Why You Should Get Life Insurance

August 13, 2019
August 13, 2019 Emmelis Keaney

Life insurance can be a lifesaver. Although talking about what happens if your time comes is tough, having a conversation with a representative from one of the industry’s best life insurance companies is a must. Here are 10 important reasons why you should get life insurance today.

1. Cover Final Expenses

Final expenses can get very high once they’re all put together. According to the National Funeral Directors Association, the average funeral costs north of $7,000. Even a small, $25,000 life insurance policy would help your loved ones cover that cost without any financial hardship.

2. Pay Outstanding Debts

A life insurance policy will help the beneficiary of your choice settle any debt that you may carry. There is a process called probate in which someone you trust will pay any bills that you leave behind. Credit card companies, mortgage lenders, car loans lenders, hospitals, and most other creditors still expect that bills will get paid.

3. Relieve the Financial Burden of a Difficult Time

Losing a loved one is an extremely difficult time emotionally. Life insurance allows the people you might leave behind time to grieve without worrying about the financial impact. Knowing that they will have what’s needed to cover the cost of your final arrangements, pay outstanding bills that you might have, and maybe even cover any loss of income of their own will offer tremendous relief.

4. Replace Your Annual Salary

If you’re the breadwinner of your family, or even if your salary is simply a significant contribution to your household, things might get tough for your family if that money stopped coming in. The general rule of thumb is that you should carry as much as 10 times your annual salary in insurance. This level of policy will replace your annual salary for several years after you’re gone and will help ease the financial burden.

5. Cover Future Expenses

Children are expensive, and they tend to get even more expensive as they grow. Having a life insurance policy will mean that your surviving spouse can afford to give them the things they need and support whatever interests they might pursue in the coming years, regardless of the financial constraints.

6. Help Send Your Kids to College

Providing financial security after you’re gone might also help to send your kid(s) to college. If higher education is important in your household, knowing that your family can pursue an education with little to no financial hardship is a great reason to have life insurance. The average cost for attending a 4-year college tops $20,000 per year. A life insurance policy could help your children cover those costs when the time comes.

7. Take Care of Legal Costs to Settle Estate

There are usually legal costs associated with settling an estate. This process, as mentioned above, is called probate. Typically a lawyer, or an appointed executor of your will, will see to it that financial obligations are fulfilled and your estate is settled.

8. It’s More Affordable Than Other Types of Insurance

Life insurance is relatively cheap compared to other insurance policies, such as car, house, and health. Because these policies are affordable, purchasing them is a no-brainer. Some employers even offer a life insurance benefit that you pay before taxes, which lowers your tax burden and saves you money in the long run.

9. Peace of Mind

More than anything, these insurance policies provide peace of mind. You’ll know that if anything ever happens to you, your family will be taken care of. Your family will know that too.

10. Leave an Inheritance to Your Kids

If used wisely by the beneficiary of your policy, life insurance benefits could also serve as an inheritance for your children once they reach a certain age. Depending on their respective ages when you establish the policy, they could even be listed as the beneficiaries. If they are minors, you will have to consider appointing someone to oversee the funds until they are of legal age.