People rarely think about life insurance when they’re in their 20s. However, the healthier and younger you are when you purchase a policy, the less you’ll have to pay (unless you enjoy extreme sports or have a high-risk job. The average nonsmoker in their 20s or 30s can expect to be charged between 10 and 50 dollars a month, and even the gym membership costs more than that. If that’s not enough to convince you to protect the financial stability of your family, read the following reasons why you need life insurance.
1. Protecting your family
One of the biggest reasons why you need life insurance is that it replaces your income so that your loved one can depend on your support even after you’re gone. If you have kids or your other loved ones depend on you for financial stability this is very important. You can provide them everything they need to sustain the standard of living that they are used to, even after your death.
2. Thinking ahead of time
If something unexpected would happen to you, you’d know that your family is taken care of. Thinking ahead of time always pays off, in this case literally, and it’s one of the reasons why need life insurance. You’ll keep taking care of your loved ones even after your death if you think ahead of time.
3. Leaving an inheritance
If you buy a life insurance policy, as well as name your family as beneficiaries, you’ll leave an inheritance even if you don’t have other assets. It’s a great way to take care of the financial future of your kids and provide for all needs that will eventually occur. This is one of the biggest reasons why you need life insurance.
4. Providing choices
When an income earner passes away, those he leaves behind have to make hard decisions very quickly. They need to make these decisions during a very emotional time when they are still grieving their loss. Life insurance lets them adjust over time instead of having to move or find a job right away. You’re leaving your family choices if they need to pay off debts, meet housing payments as well as cover the ongoing living expenses. If you have kids or grandkids, you’ll also help fund their college education.
5. Paying off debts and expenses
After your death, your family will need to pay off all of your debts and arrange for a funeral. Expenses such as car loans, credit card loans, mortgage, and burial costs can reach high amounts that your family might not be able to cover. You don’t want to leave them with an extra financial burden anyway since they’ll be dealing with an emotional one.
6. Providing comfort at the right moment
You can make sure that a big amount of money gets to your family upon your death without federal income taxes. Life insurance gives you this option, and your family will receive money in the difficult time in their lives while they’re grieving. While no amount of money can replace a loved one, it can still bring at least some comfort when everything seems to be falling apart. Your family will know that you’re looking after them even though you’re no longer with them. This is one of the biggest reasons why you need life insurance.
7. Contributing to financial security
If you’re a parent, you want your kids to have everything they might need after you’re no longer there to look after them. You want them to have a quality college education, get married or start a business, and have enough money to do these things. Thinking about these things while they’re still at home is a good idea that contributes to financial security.
8. Bringing peace of mind
No one can know when they’ll pass away, and it could happen in a day, a month, or 60 years from now, but it happens to everyone eventually. Money is no substitute for a loved one, but it protects the family from uncertainty. Buying life insurance brings peace of mind to both you and your loved ones. You won’t have to worry about their financial safety, and you’ll know that it’s taken care of. They will be able to grieve at peace without having to struggle with new circumstances regarding their financial safety. Life insurance is there to protect your loved ones from uncertainty and help them through a very difficult time in their lives. All the reasons why you need life insurance are about them and your care for them.
Learn about the life insurance underwriting process and take care of your family.