Why should you buy life insurance? Most people would say that it is a waste of money and you are not required to get one. However, a recent survey showed that over two thirds of American adults are either overweight or obese and this has been associated with increased health problems like heart disease and cancer. Not only does being overweight put extra pressure on your heart and bones but it also raises your risk of developing a chronic illness like heart disease or diabetes. Being obese also puts extra stress on your finances as most insurances do not cover pre-existing conditions.
Another reason to consider why life insurance is important is the need for financial security in the event that you die unexpectedly. A question often asked by would be business partners or family members is if they too need life insurance? The answer is almost always yes. The main reason for this is that your family and business partner’s financial needs are much different than yours. If you are married with kids then of course you have a financial plan that will take care of them and your spouse as well.
People who have children are generally much more likely to need life insurance coverage especially if they have young children. If you are married and you have a small business then you will be adding another layer of overhead and need coverage that will not only take care of your family in the case of your death but also of your business. It is best if you can get a policy that will last for at least ten years or more than that so that you can collect on the premium payments during your golden years.
Most people who decide to take out a life insurance policy in their lives also have some sort of retirement savings or pension. It is a good idea to make sure that any money left behind will go to your loved ones after your death. Many policies will make provisions for this. However, even if you don’t leave anything behind there are certain expenses that can occur during your golden years that can be covered by the policy.
For example your dependents may have expenses that you didn’t contribute to and they will need to pay for. If you have any dependents then it is especially important that you have a life insurance policy to cover these debts. Most policies will also include debts that were accumulated during your working years. This can include things like your mortgage, student loans, credit cards, alimony, and others. These will all be covered by the policy.
Another reason why life insurance is important is that it offers you some protection in the case of your death or sickness. Most policies will give you some type of money in the event that you pass away. Usually this is either a lump sum of money or a line of credit which can help to manage your debts in a different way than simply paying them off in monthly installments. You also get the option to borrow against the cash value of your policy in the event that you run out of funds.
Finally, life insurance is great for peace of mind. Knowing that your family is going to be taken care of after you pass is going to help to put the fear of death to rest. Knowing that your dependents won’t have to worry about how you are going to support them and will have steady income should you pass away is going to give them something to focus on in the face of inevitable grief. You can choose to take a policy that pays a percentage of your death benefits every month, or you can take a policy that pays a lump sum at the time of your death or as a line of credit. Whatever option you choose it will allow you to be able to comfortably pay your bills and have some security.
When it comes down to it, you really don’t need to justify why life insurance is important. All you need to do is weigh the advantages and weigh the disadvantages and you will find that it is a no brainer. Do not let your family suffer by not having the income to pay their bills when you pass. Take the time now to review your options and see if a life insurance policy is the best solution for you. If not, you can always check into other options such as having an end of life fund set up which can be paid in a number of ways including a loan from the bank or the government. No one needs to live worrying about the financial future of their family.
