Even the term “life insurance” can sound intimidating, but purchasing life insurance is one of the most financially sound choices you can make in your lifetime. And really, life insurance isn’t about you at all. The policy may be in your name, but its entire purpose is to benefit the people that live on after you are gone. It’s emotional, it’s scary, but it’s too important to ignore.
Life Insurance Keeps Your Family Protected
In the case of your passing, any family members that have been relying on you financially will be left without your support. For most people, this means that the living spouse has only one income on which to pay the same bills, raise children, save for college, or pay for medical expenses. With life insurance coverage, your family receives a death benefit payment upon the time of your passing, so they will not need to feel the sting of financial strain along with the heavy grief that follows the death of a loved one.
Most men and women consider this to be the very top priority when choosing life insurance. They want to know that their spouses, children, or parents would not be burdened or forced into difficult situations in desperation to make enough money. With your life insurance payment, your spouse could pay off debts, cover daily living expenses, pay for your funeral and burial, and more. Final funeral expenses alone can cost tens of thousands of dollars, and most families don’t have that kind of money sitting around gathering dust—hence the importance of an insurance policy!
Life Insurance Can Offer Benefits Throughout Your Life
There are two forms of life insurance, term and whole. If you choose to invest in whole life insurance, you are permanently insured throughout your entire life and you even build a cash value on your policy that you can borrow against as a loan down the road. As long as your payments are on time, your whole life insurance policy could help you acquire the money for a down payment on a home, a new car, or any other large purchase that would otherwise require a bank and nasty interest rates.
Taxes come a callin’ even after death, especially estate taxes. Large estates are charged very hefty estate taxes after death, and the right life insurance policy can make sure that is a non-issue for any survivors.