6 Reasons Why You Should Have a Life Insurance Policy

In life, there are several important milestones that may cause us to think about the future. Although no one wants to think about the future, life insurance is a way to reassure and comfort your loved ones in case you pass away. It’s natural for us to worry about what will become of those we leave behind when we think about our lives and the future.

There is a possibility your dependents or next of kin may become liable for your financial obligations such as debts, mortgages, childcare costs, funeral, medical, and care costs. Even if you have been careful with your finances and do not have any outstanding debts, you may wish to give a legacy to your family. You may want to provide a small sum to help cover the costs of your funeral or help to contribute toward the future living costs for any dependents. Everything is possible through a life insurance policy.

As we get older, get married, build families, and start our own careers, we increasingly realize that life insurance is a vital part of our financial plans. If you choose the right kind of policy, life insurance can be quite affordable. So, there’s no reason not to get coverage today. When you have a life insurance policy, you are sure that money will be there to protect your loved ones after your passing. That is why financial experts view life insurance as the cornerstone of sound financial planning. In this article, we have shortlisted 6 reasons why you should have a life insurance policy.

1) Life insurance provides you the opportunity to take care of loved ones

Purchasing life insurance is about honoring your responsibilities and keeping your promises. You view your decision from the perspective of your family, rather than your own.  Your spouse and children might suffer financial losses if you die prematurely. Life insurance protects them from these losses.

2) Life insurance is for the living

Life insurance isn’t about you. You know that if you die, the life insurance you purchased will cover your loved ones and provide financial relief in the event of your death. It’s about them.

3) Life insurance leaves an inheritance

If you do not have any other assets to leave to your loved ones, you can create an inheritance by purchasing life insurance and naming them as the beneficiaries. The purpose of this is to set up your loved ones for a bright financial future and help them meet their monetary needs.

4) Life insurance buys time and options

Often, when a family income earner dies, the survivors have to make tough decisions very quickly. They may not be emotionally prepared to consider the best option at the time. Instead of being forced to find new jobs right after death or to move to a smaller home, life insurance allows survivors to adjust over time.

Your life insurance policy can provide benefits to your family in so many different ways like:

• Pay off debts
• Housing payments
• Ongoing living expenses,
• Funding for the education of your children, etc.

5) Life insurance provides money in an urgent situation

Depending on your life insurance policy, you or your beneficiary can receive a specified sum of money at just the right time. When you die, your family can be assured that the sum you have chosen-possibly hundreds of thousands of dollars, possibly even millions-will be available almost immediately. In addition, your death benefit will generally not be subject to federal income taxes.

6) Life insurance provides more financial security

It’s normal for parents to want to make sure their children are treated well after they are gone. You want them to have a quality college education and also provide for other life endeavors like getting married or starting a business.

Apart from these six reasons, life insurance also helps one to build a financial corpus for your retirement so that you can live your post-retirement life comfortably.

Conclusion

It is impossible to estimate when we will die. It could happen today, tomorrow, or fifty years from now. Money cannot replace someone’s life, but life insurance can help counteract the uncertainty of end-of-life expenses. A life insurance policy will provide peace of mind to you and your family when you’re gone. Additionally, a life insurance policy protects your heirs from the unknown and enables them to financially make ends meet from that difficult time following a loss. Therefore, life insurance is one of the most important policies that you should have.