Why Do I Need Life Insurance & How Can It Help My Family?
Life insurance has several purposes. Its most important function is to replace the earnings that would cease at the death of the insured. If you die during your earning years, your family could suffer a severe economic loss as a result of losing your current and future income. Unfortunately, your family would still have to pay its regular bills, the mortgage, and outstanding debts, and perhaps even continue saving for college and retirement. Unless you're independently wealthy, achieving these goals may be virtually impossible for your family with the loss of your steady income. Life insurance offers a way for your family to continue living comfortably and without worry.
Think you don't need life insurance if you don't have kids? Think again. It may seem like an unnecessary expense. But there are many reasons to have life insurance, even if you’re not supporting a family.
1. Mortgage protection
Whether you live by yourself, with a spouse or significant other, you may want to buy life insurance as mortgage protection. Think about it − you don't want the person you live with to be homeless if you die unexpectedly, do you?
Term life insurance can be used to pay off an outstanding mortgage balance. Just select a term that matches the length of your mortgage payment period. Some companies even offer decreasing term insurance, which means the death benefit decreases along with your mortgage balance.
2. Income replacement
You and your significant other may have planned for a future based on two incomes − but what if one of you passes away unexpectedly? Life insurance can be used to replace the lost income so the survivor can maintain the same standard of living.
3. Final expenses
You've seen the commercials − funeral expenses, burial costs and medical bills can add up to a hefty amount. The last thing you want is for your loved ones to shoulder this extra burden.
Life insurance can be used to plan for these final expenses. Permanent life insurance is available in various amounts, so you can pick a death benefit that meets your needs.
4. College funding
This one only applies if you have kids. But have you seen the tuition rates lately?
Life insurance can help fund a college education. If you die, the death benefit may be invested andpotentially grow to the needed amount by the time your children reach college age. Feel better knowing that you helped prepare for their future – even if you are not there to see it.
The earlier the better
So maybe you are starting to see the need for life insurance ... and the harsh reality that could come about if you or a loved one were to pass away unexpectedly? Don't put it off! Typically, the younger you are when you get life insurance, the lower the cost and the easier it is to get approved.
to begin your life insurance quote inquiry and get the financial protection that you and your family deserves.