Are you trying to secure your future and wonder about the importance of life insurance? Read this article to learn why life insurance is important.
Ever stop to think about what would happen with your loved ones if you suddenly passed away? It’s a scary thought for sure, as most of us would rather not ponder our own mortality.
Nevertheless, it’s a question we all must consider at some point to protect and ensure the financial futures of those we love. That’s where life insurance comes in. And remember, the importance of life insurance lies with those you leave behind. So let’s take a closer look at the best reasons to get life insurance.
Burial Expenses
Funeral expenses tend to be expensive, often costing several thousand dollars. At a bare minimum, make sure your insurance covers the costs for your burial to avoid becoming a financial burden to your survivors. Do the responsible thing, make sure you’re funeral and burial are covered and sleep better at night.
Replacement Income
Do you have loved ones who depend on you financially? What would happen to them financially if you were to suddenly pass away?
When you pass, the monthly bills will still come around each month. Don’t leave those you care about helpless. Purchase adequate life insurance to help replace the lost income so your survivors can continue to make ends meet.
Pay Off Debts
Along those lines, your debts will remain a problem for your loved ones after your pass. For example, if you co-sign for a mortgage or auto loan with your spouse, he or she is still on the hook to make those payments.
If the spouse you leave behind can’t make payments, creditors will likely try to collect from your estate. Take care of those you love by getting adequate life insurance coverage that pays off any debts you might otherwise leave behind.
Build Cash Value
Whole life insurance provides permanent life coverage while also including an investment vehicle for cash growth. Unlike term life insurance, which exists for a defined period of time, whole life insurance doesn’t end unless you cancel the policy.
The best part is that whole life insurance can generate cash value over time. You can pass that cash on to your heirs. You can also use it for financial emergencies by taking out a loan to yourself that you can pay back.
Many bankers and investors know how to use whole life insurance and other products to grow their wealth. An Infinite 101 course can educate you on proven strategies to accumulate wealth as well.
Pay for College
Putting money in a savings account isn’t the only way to save money for your child’s college education. The right life insurance policy can be a sound option providing payouts that supplement your savings. Even if your child uses student loans, the proceeds from your insurance could help to eliminate that student debt.
Final Thoughts on the Importance of Life Insurance
The main reason to purchase life insurance is to pass on a financial legacy to your heirs. In this way, you’re leaving your loved ones with the capability of making ends meet at a minimum. And with a little planning, you can even help them achieve their goals such as a college education or a comfortable retirement.
On the flip side, without life insurance, you may leave them with an extreme financial burden. Your loved ones might be defenseless against debt collectors and unable to pay basic monthly bills.
The bottom line is that the importance of life insurance is protecting the financial futures of the loved ones you leave behind should the unthinkable happen.
If you found this article helpful, please check back often as we update our content daily.
