Buying a life insurance policy is something that many people push off, sometimes until it is too late. For many people, the thought of buying life insurance means thinking about their death, which is something that most people wish to avoid. Life insurance is not about death, but instead about the future and security of your loved ones. If you have not yet made the jump to purchase your life insurance policy, below are four reasons you should consider one.[1]
It Assists With Your Income
If your family members are dependent on the income that you bring to the household, a sudden loss of it may add intense stress to their grief. Life insurance can typically cover your income at least long enough for your loved ones to gain stability or make up for the loss of monthly funds.[2]
It Will Help With Funeral Expenses
Funeral arrangements can cost thousands of dollars for even simple services. Your life insurance policy may help your loved ones to cover these expenses without placing any extra financial burden on them.[3]
It Will Help With Your Debt
There is a common misconception that all your debt will be erased in the event of your death. While this may be true for some debts, it is not true for all; most of the time, it tends to not be true of the largest debts like anything left to pay on a home. If you have a spouse for is a co-signer on your mortgages or other loans, they may become responsible for the entire debt. Debtors may also come after the assets in your estate, which can significantly reduce the amount of estate that will be left to your loved ones.[4],[5]
It Will Help With Large Future Expenses
If you have children, you likely have spent some time planning for their future—including higher education or vocational training. Any kind of secondary education can be expensive; with a life insurance policy in place, you will take the stress off of your spouse or your children when it comes time to pay for college expenses. If your children have already gone through college or training and paid for it with loans, your life insurance policy can help ease some of that burden.[6]
Life insurance is not about the dead but the living and how you can continue your responsibilities toward them and ensure they are taken care of in the sudden event of your death. For some families, it may even mean staving off financial disaster.
Important Disclosures:
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
This material contains only general descriptions and is not a solicitation to sell any insurance product or security, nor is it intended as any financial or tax advice. For information about specific insurance needs or situations, contact your insurance agent. This article is intended to assist in educating you about insurance generally and not to provide personal service. They may not take into account your personal characteristics such as budget, assets, risk tolerance, family situation or activities which may affect the type of insurance that would be right for you. In addition, state insurance laws and insurance underwriting rules may affect available coverage and its costs. Guarantees are based on the claims paying ability of the issuing company. If you need more information or would like personal advice you should consult an insurance professional. You may also visit your state’s insurance department for more information.
This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.
All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.
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Content Provider: WriterAccess
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Sources:
https://www.newyorklife.com/articles/six-reasons-to-buy-life-insurance
[1] https://www.consumersadvocate.org/life-insurance/why-i-stopped-procrastinating-and-got-life-insurance
[2] https://www.globelifeinsurance.com/familylifeinsurance
[3] https://www.aarp.org/home-family/friends-family/info-2020/paying-for-cost-of-funeral.html
[4] https://www.consumerfinance.gov/ask-cfpb/if-someone-dies-owing-a-debt-does-the-debt-go-away-when-they-die-en-1463/
[5] https://www.policygenius.com/life-insurance/can-creditors-take-my-life-insurance/
[6] https://www.policygenius.com/life-insurance/how-does-life-insurance-work/
Sources
https://www.consumersadvocate.org/life-insurance/why-i-stopped-procrastinating-and-got-life-insurance
https://www.globelifeinsurance.com/familylifeinsurance
https://www.consumerfinance.gov/ask-cfpb/if-someone-dies-owing-a-debt-does-the-debt-go-away-when-they-die-en-1463/
https://www.policygenius.com/life-insurance/can-creditors-take-my-life-insurance/
https://www.policygenius.com/life-insurance/how-does-life-insurance-work/
