7 Top Reasons Why You Need Life Insurance

Because No One Beats the Grim Reaper…

Kirby Thomas
Online Life Insurance CompPRO+ in San Diego, CA

Life Insurance Insurance

7 Top Reasons Why You Need Life Insurance
June 22, 2016

Nobody likes to think about life insurance, because nobody likes to think about death. Even so, it is something you cannot ignore. Once you pass away, it's too late – and if you do manage to come back from the other side, a life insurance policy is probably not the first item on your priority list.

Remember, life insurance is not for you. It is for your loved ones – the people who depend on you. If you are at the stage of life where you are young and with no dependents, life insurance may not be as important for you – but for the rest of you with spouses, kids, mortgages, and other commitments, here are 7 top reasons why life insurance is important for you to have.

  1. Replacing Your Income – If you're the family breadwinner, the odds are high that your family will not be able to maintain their standard of living after your death – and even if you are not the breadwinner, your contribution is significant. The life insurance proceeds will allow your family a bridge to recover and stabilize the family income and expenses.

  2. Death Costs – Life insurance can deal with the significant funeral and burial costs your family will incur. Moreover, if most of your assets are in your house and other non-liquid forms, your family will need a source of cash to deal with any applicable estate taxes and similar bills. Otherwise, they could be forced to sell assets at a significant loss. The cash provided by a life insurance policy can help avoid that possibility.

  3. Debt Protection – Most debts that you have will be transferred onto your family, such as mortgage payments, car payments, and outstanding credit card debt. Some debts could even require full payment upon your death. Proceeds from your policy can keep your family from spiraling into further debt and potentially losing their home and other assets.

  4. Insufficient Work Coverage – You may have some form of insurance coverage at work, but it may only cover work-related circumstances and specific situations, and in any case is unlikely to be enough to meet your family's needs after your death. Having a separate life insurance policy also insures coverage if you lose your current job or switch to a job without insurance benefits.

  5. Investment Value – If you decide to buy a form of a permanent life policy instead of a term life policy, you will have a cash value component that serves as an investment. You can choose from several different styles of investment component and death benefits based on your family's needs. This not only covers your family in case of your death, but it provides investment income during your life.

  6. Children's Education – Your death benefits can be directed toward a better education for the children you leave behind, and alleviate the pressures of them having to depend completely on scholarships or having to take out large student loans.

  7. Peace of Mind – You can now juggle chain saws and engage in dangerous hobbies like base jumping, knowing that your family will be taken care of when the inevitable happens.

    We're kidding, of course… but you really will have peace of mind knowing that you have protected your family against any mishap that should occur to you.

Go ahead and enjoy your life… but do be careful with the chains saws. Just because you have life insurance doesn't mean you should be in a hurry to use it. Even if you feel you wasted all that money on premiums, you shouldn't be sad if you outlive your term life insurance policy!

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Photo ©iStock.com/Sablin

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