5 Reasons Why You Need Life Insurance

why do i need life insurance policy coverage

Death comes for everyone, but you can prepare for this inevitability with an excellent life insurance policy.

Life insurance is an essential component of everyone's financial portfolio. If you don't have life insurance you may be exposing your loved ones to financial risk.

You may be thinking, "why do I need life insurance?" Keep reading for our top five reasons to invest in life insurance.

Life Insurance is Relatively Inexpensive, Especially if You Are Young

Life insurance policies are relatively inexpensive, especially compared to their several $100,000 payouts. The average 20-year policy costs well under $1,000 annually, depending on your age and level of coverage.

Locking in a low rate now will save you money in the long run. If you are married or plan to have kids, you want to secure their future if you perish. Life insurance is fairly inexpensive when you consider the peace of mind it provides. To learn more about life insurance costs, refer to a decreasing term calculator.

Pay Off Debt

It may surprise you to learn that your debt doesn't always die with you. That is right. After you pass away, some previous debts may pass along to your next of kin or spouse / partner.

Life Insurance can pay off outstanding debts, like student loans and car payments. Life insurance can also cover your burial and funeral expenses.

You can't prevent the emotional impact your death will have on your family. However, you can minimize your death's impact by investing in life insurance.

Replace Lost Income

Now 40 percent of American families wouldn't be able to afford an unexpected expense of $400. Your family depends on the money you make. How long would they be able to pay the bills without your financial contributions?

Life insurance protects your family from financial ruin if you die unexpectedly. Check out your local insurer for a competitive policy that will protect your family's financial future.

Secure Your Twilight Years

It is a common misconception that life insurance yields financial benefits after your death. If you structure your policy carefully, you can reap rewards from your life insurance while you are still alive.

Hybrid life insurance policies cover long-term care in addition to the normal death benefits. This can help you fund medical care as you age, and prevent your children from taking over the financial obligation of your care. Alongside these hybrid policies, considering long term care insurance is recommended as it specifically covers the cost of long-term care services, which can include in-home care, nursing home care, or assisted living facilities. These services are typically not covered by traditional health insurance or Medicare and can be financially overwhelming.

Permanent Policies Build Value 

Permanent life insurance policies build cash value over time on top of your death benefits.

You can borrow the cash value from your life insurance policy to pay for education or a down payment for a home. This is an attractive option because interest rates tend to be very low when you borrow from your insurance's cash value.

Just make sure you pay it back so your beneficiaries are still financially secure after you pass. 

Why Do I Need Life Insurance? To Protect Your Family's Future

Think about the people you love, then ask yourself, "why do I need life insurance?" You want to protect the people you love after your gone! Life insurance benefits prevent your death from becoming a financial disaster for the people around you.

When you invest in a life insurance policy you have peace of mind knowing any expenses related to your death are covered. Get the process started today for additional family financial protection.

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