Why Do You Need Life Insurance?
Life is too precious, so much that it is difficult to put a price on it. Money surely can’t bring our late loved ones back or buy us happiness and affection, but it can very well help us realize its significance for survival. A family’s survival is risked if its sole earner dies unexpectedly. The demise of a loved one creates a void that is hard to fill his/her absence must not disrupt the financial future of the family. It is therefore, essential to realize the value of your life and sign up for life insurance, which is a protection against financial loss resulting from the insured’s death. In legal terms, life insurance is a contract between a policy owner and an insurer, wherein the latter agrees to reimburse the occurrence of the insured individual’s death or other event such as terminal illness or critical illness. The insured agrees to pay the cost in terms of insurance premium for the service.
4 Reasons why you need Life Insurance:
1) Protecting Family/Loved Ones
If you are the sole provider of income for your family, or even contribute to your family’s income by any amount, that income when you die will continue to provide for your family, tax-free, if you are insured. It is increasingly important to families with young children or adults dependent on their present income who have a specific standard of living that they would like to maintain after the one insured passes. It is also important to have enough money to cover daily household tasks such as cleaning, cooking, childcare, etc. to ensure that your family/loved ones will continue to grow after the insured passes and be able to live a comfortable life ensuring all needs are protected and satisfied.
2) Creating an Inheritance
Even if you have limited or no assets to pass on to your family, an inheritance can still be formed under a Life Insurance policy to pass to your families as beneficiaries in the event of your death. By forming an inheritance, you are setting your family/children up with a solid financial plan for the future that will aid in providing for any financial needs they may have.
3) Manage Debts/Expenses
A very important part about obtaining a Life Insurance policy is the exoneration of debts and expenses that you don’t want to burden your family with in the event of your death. In addition to covering everyday expenses of living, Life Insurance policies also cover long term debt and expenses such as mortgages, credit cards, and car loans. Other expenses such as funeral costs and burial fees can also bury your family in financial instability.
4) Increased Financial Security
Like most families you will probably want your children and loved ones to be taken care of when you can’t be there anymore. Not only do you want to set your children up with a financially protected future that will enable them to get a good education, but you also may want to provide them with the opportunity in the future such as marriage or starting a business of their own. For these reasons, additional coverage on your Life Insurance policy is absolute and highly stressed especially if you still have children living with you at home.