REASONS TO HAVE LIFE INSURANCE
In this article, we shall discuss the meaning of life insurance before we discuss the reasons to have life insurance. If you know the meaning of life insurance better, you will know the reasons to have life insurance.
Let’s start from the beginning. What is Life Insurance? This is a type of insurance policy that “insures” or protects the life of the policy holder.
With this, someone can be certain that his loved ones or beneficiaries will receive a specific amount of money when he or she passes away.
Life Insurance is essentially a lump sum of money paid to your loved ones when you pass away.
Life Insurance is about looking after your family in the even something unfortunate was to happen to you. The money they receive can help them cover costs such as your funeral, on-going educational costs for the kids, allow the ability to take time off work to grieve, or even pay off the mortgage – whatever helps relieve financial pressure during a difficult time.
It can be used for anything they need, no questions asked.
Life insurance is an agreement between you and an insurance provider that, in exchange for your monthly payments, the insurer will pay a sum of money to your loved ones when you die.
Okay, it’s not a fun topic to think about. But focus on this: You buy life insurance not because you’re going to die but because those you love are going to live and you want them to be financially secure after you’re gone.
Is It Expensive?
Short answer – No, it doesn’t have to be!
The trick is to insure yourself for the right amount, nothing less and nothing more than your family needs. But don’t forget to adjust it as time goes on, your situation changes all the time, and so should your insurance!
Who Needs Life Insurance?
Life insurance is not for the person who has passed on but for those that are left behind. It’s a way to protect the ones we love from the financial burden that they are left to carry after their loved one is gone.
Life insurance is a love letter to your family. It says that you are there to take care of them even though you are no longer living.
Most people don’t understand the value of life insurance. I’ll admit I was one of those people. Most people think you only need life insurance once you have kids but that’s actually not the case.
Here are some reasons to have life insurance:
1) The main reason to have life insurance is because it’s for INCOME REPLACEMENT. Just like you get car insurance or home insurance just in case there’s any damages you’re properly protected. We never know what’s going to happen in the world. Look what happen with COVID. A lot of people got laid off. If you have life insurance then you would have something to fall back on.
2) The best time to get life insurance is when you’re young because you will get the cheapest premium and you will be grandfathered into that rate. Also when you’re healthy because then you will definitely get approved.
3) To make sure you’re leaving behind something for your family. A lot of times when someone passes away in your family you cannot grieve properly because you’re worrying about the financial burden you’re left with.
4) To expedite the probate process. You don’t have to go through the court and the long process. Having everything in writing will save time when it comes to making decisions for the funeral process.
5) It’s to have a medical directive in case you’re severely sick in the hospital and cannot make decisions for yourself
6) The life insurance from your job is not enough. Your life insurance with your job will only be active when you’re working with them. Once you leave that job it won’t be active anymore. The coverage they give you won’t be enough for when you’re ready to retire due to inflation. That’s why it’s important to have your own personal life insurance as well.
SEE ALSO : Common mistakes to avoid when buying auto insurance policy
It’s important to make sure you and your family is properly protected. Start educate yourself and do the necessary research. I am so grateful that I’m learning all of theses ways to improve my finances now so I’m set for the future. I know now once I’m ready to start my family I will be financially stable.