Last Updated on January 13, 2021
Life insurance is fairly cheap, depending on your type of policy. knowing that you have saved money available for you and to protect your loved ones in any case of emergency would be great.
Table of Contents
An Income Stream
If your loved ones depend on your incomes to support their livelihoods like food, medical care, car payments, and much more. Then getting life insurance is a must because if you die it will replace your income.
Life insurance is necessary for new parents with young children or adults who no longer have access to their partner’s income. Plus, if you and your wife/husband are always busy at work, then this policy can cover the costs of hiring someone who can take care of the household tasks like childcare, cooking, and anything all growing families need.
Insurance is very important for avoiding debts
Not only you will provide your family with an income to cover everyday living expenses, but you will also help them cover any debt, like credit cards, car loans, and mortgages.
This way you will guarantee that your partner and kids won’t have to deal with the loss of their home and the life they have built-in there, including their schools, neighbors, and friendships.
It is enough dealing with one big loss, but adding a financial burden on their shoulders should not be an option.
If you haven’t heard yet, the college tuition and student loan debt have grown faster than inflation. In addition to that, many private lending institutions don’t care about death events.
In other words, the debt may reduce the number of advantages available to pass to the beneficiary of a deceased student’s estate, which is why life insurance is important: it will provide all the needed funds to reduce or eliminate the student loan debt if the graduate dies before the debt was satisfied.
Also, it may trigger repayment obligations for anyone who signed to be a cosigner on the loan.
A Child’s Need
According to The U.S Department of Agriculture, to raise a child who was born in 2015, you will need $233,610, which is not a small number or an easy one to earn.
So if you are a parent, or you are trying to create a family soon, you need to start considering if you can provide enough money to raise your future child.
It doesn’t matter if you are employed or stay-at-home parents because what it takes to raise a child is a lot more than we have ever expected, and of course, we only want the best for our children, which is why considering life insurance wouldn’t be a bad idea.
A Business
If you own a business, then finding the right life insurance might be hard, especially if you have partners in the business. If one passes away, it is best to buy the deceased partner’s part in the business instead of wasting time and resources finding a new person who may not be as good as he/she should be.
With life insurance, however, you will be able to fund the deceased partner’s part in the business, and if you are not interested in his part, you will also find the right person without having to waste anything.
A Retirement
Did you know that if you want to retire at 65, you will need to bank 11 times your annual pay? these number do change with you having health insurance for retirees .Yes, and that’s only if you worked until the age of 65. Depressing, right?
However, it is necessary to have life insurance or enough savings in order for your spouse to live comfortably after you pass away. Otherwise, your family won’t be living such golden years after losing you.
Funeral Expenses
According to the funeral directors, when some families don’t have enough funds, they feel forced to cut back on the service or ask for donations from their friends and family because the median price for a funeral is $7,000 and more.
Before you get life insurance, make sure you know all your options and be well-aware of everything they provide, ask your family and friends who have more experience in this field, then you can proudly take the step. If you picked the right one with the right price, you will be very comfortable knowing that your family’s future is in safe hands.
