I have found that many people are resistant to the idea of purchasing life insurance because they find the topic “morbid” or it simply makes them feel uncomfortable. And for some, taking out a term or whole life insurance policy can just feel like another monthly expense they can’t afford.
If you fall into one of these two camps then I am here to tell you that failing to purchase life insurance is a mistake you cannot afford to make. Life insurance not only provides peace of mind but it is one of the best things you can do for your loved ones. How will they pay for medical bills, funeral costs and daily living costs when you pass away?
Life insurance pays out a sum of money either on the death of the insured person or after a set period. For instance, there are many plans where you can pay as low as $15 dollars a month and get a $250K coverage in case of death.
If you are still on the fence then this article was written for you; listed below are the three biggest benefits to purchasing life insurance:
Life insurance is a way to take care of your family
If you have people who depend on your income then you need to think about what they would do if you were to unexpectedly pass. This could apply to parents of young children, married couples and individuals who have dependent elderly parents.
Life insurance covers final expenses
Did you know that funeral expenses can cost tens of thousands of dollars? Your family will already have a big enough emotional burden to bear, they shouldn’t have to suffer financially as well. Even taking out a small supplemental life insurance plan will be enough to cover these costs.
Life insurance provides options
When someone dies, their family members are often forced to make financial decisions that they are not emotionally prepared to make. Life insurance gives them options so they aren’t forced to immediately downsize their home or look for a new job.
Here are some types of life insurance you want to research about:
|Term Life Insurance||Universal Life Insurance||Whole Life Insurance|
|What is it?||Replaces income during working years||Wealth transfer & benefits with tax-deferred assets accumulation||Wealth transfer & benefits with tax-deferred assets accumulation|
|Protection Period||A specific number of years||For a lifetime||For a lifetime|
|Cost||Less expensive||More expensive than entire term||More expensive than entire term|
|Can proceeds go to beneficiaries?||Yes – and free of taxes||Yes – and free of taxes||Yes – and free of taxes|