Life insurance or also known as Life Cover or Death Cover, is one of those things that you probably should have. It is actually a security thing that everyone should have but mostly people ignore to have it. You might think that I am young and healthy, why do I need Life insurance? But the fact is longer you wait, more you are at risk of having something append to you and not have an insurance coverage to pay your future bills. The other reason that might be the reason for not having a life insurance is that perhaps it is on your to do list but you haven’t simply gotten to it yet. Below we have listed few of the important reasons as to why you need Life Insurance.
Replacing the lost income:-
The basic purpose of life insurance is to provide your loved ones financial security in case you pass away. Consider this, what would happen to those who are financially dependent upon you, after your death? To save them from future financial troubles, get your life insurance coverage today. This way they will not a have a hard time when it comes to aping bills.
Coverage for burial expenses:-
Dying is definitely worst of things but you know what’s worst that that? It is the burial cost. These days, burial costs even the most modest ones, can cost anywhere in between few thousand dollars. Yes you can prepay for funeral these days, but really do people even have time to do this sort of thing far ahead. Pre payment has its benefits like, your loved ones will not have to worry about a thing but still it carries some risks. Life insurance is the best alternate as it will guarantee your beneficiaries that they can give you proper burial.
Paying off debts:-
Dying does not mean that your debts will simply just disappear. In cases like when you have joint mortgage or loans with your spouse, after your death they will become the sole debtor for these debts. One scenario is that, creditors will simply collect by selling off your estate. But do you really want that, after these creditors get their money, your beneficiaries will only have lesser amount. With life insurance, your heirs can rest at ease as the insurance will cover these financial responsibilities after you.
Planning for college:-
While there are plenty of ways for paying for your child’s college education, life isnurace is also one them and perhaps the most suitable one as well. Life Insurance policies are a good alternate for savings. Even if your kid has to borrow money for getting through college, insurance proceeds can help them clear these troublesome student loans.
Building Cash Value:-
Term life Insurance is usually the most opted insurance option which sets in place for a specific period. However one other option is Whole Life Insurance. This insurance provides permanent coverage that can be ended when you cancel the policy and you can do it anytime. This acts as a safety cushion for your financial troubles. If you happen to have financial emergency somewhere in life, you can simply tap into this option.
Your investment can be diversified:-
Insurance policies also offer investment options with Universal Life Policies. These type of policies are often in link with investment products that pay dividends to policy holders. However be advised to read the fine print for these insurance policies to know of risks and benefits beforehand.
Better yet talk to a financial advisor before choosing is this the right investment or not.
Advance business planning:-
For those who have their own businesses, life insurance is vital as it will ensure that your hard work does not go down the drain. Even if you have a business partner, you should both have a life insurance so in case one of you passes away; the other does not have to suffer from financial burdens.
Future Estate Taxes:-
After somebody dies, their heirs usually have to suffer from Estate Taxes on the inherited assets as well. To spare your kids from huge Tax Bills, have a life insurance today as it will cover for these added costs and expenses.
Coverage is affordable:-
The often excuses made by people for not having life insurances is that costs are too damn high. In reality, these insurance costs are usually pretty affordable for majority of people. Term life policies are usually cheaper when compared to Whole Life OR Universal Life policies. To make the things easier, if you are young and relatively healthy, premium cost can be lower too.
Peace of Mind:-
No one has seen the future nor can anyone predict it. However having life insurance means that you or your loved ones, can prepare for any mishaps down the road. Even a small insurance policy can give you peace of mind while sleeping at night that you have left at least something in place for them to have a fighting chance in the harsh world.