Does everyone need life insurance? The short answer is, "no". That said, most working adults will reach a point in their lives where purchasing a life insurance policy is necessary. Below are four good reasons to consider buying life insurance.
Raising a young family is expensive. By purchasing life insurance while your children are young, you ensure their future financial needs will be met in the event of your untimely death. Even if you are a stay-at-home parent, it's essential that you have a solid plan in place to support your children if the unexpected happens. This will allow your spouse to continue working and providing for the family while also having the money available to hire child care workers or other household help.
If you have a spouse, elderly parents, or other relatives who depend on the monthly income you bring in, you need life insurance. Not only will your benefit help your loved ones meet their day-to-day financial needs, but your policy will also cover the cost of your funeral and burial.
If you have a significant amount of debt – such as a new mortgage – you need insurance. Most primary mortgages carry 30-year terms, so you'll want to ensure your family has the money available to continue making payments on the home loan should you pass away suddenly before the term is up. While you can purchase mortgage insurance, the benefit paid out by this type of coverage goes directly to the bank for the sole purpose of paying your mortgage. Life insurance, on the other hand is paid out to your beneficiary or beneficiaries and can be used in any way they choose.
If you've started a business and have taken out business loans, purchasing a life insurance policy is a good idea. Not only will this ensure that your business loans will continue to be paid should you pass away unexpectedly, but it will also protect business partners who depend on your ability to generate an income for the business.
The bottom line is that if you have anyone who loves you and depends on your income to get their financial needs met, you need to have a solid plan in place. Contact us today to learn more about how life insurance can help protect your family in the event of your unexpected death.