Do you have a spouse and/or children? If so, you should consider taking out a life insurance policy. Life insurance policies payout designated amounts of money upon the deaths of their holders, providing said money to assigned beneficiaries (wives, husbands, children, etc.).
There are a number of reasons concerning why you should buy life insurance today. We’re going to discuss 9 of those reasons below.
It Will Help With Estate Taxes
Nothing is free in the United States. You can’t even die without having to pay a hefty sum of money. What we’re speaking of here is estate taxes.
Though only levied against those with substantial assets, estate taxes can be seismic. In the end, it’s important to remember that each cent taken out of your estate after your life has ended is essentially one less cent that your beneficiaries will receive as an inheritance.
It Will Help With Other Death-related Costs
It’s not just estate taxes that you’ll have to pay when you die. There are a variety of other death-related expenses that you’ll have to pay as well.
These include everything from funeral costs to burial costs to memorial costs to cremation costs and otherwise. Altogether, these costs can equal over $10,000.
What happens if your death-related costs are not covered by a life insurance payout? They will have to be covered by your surviving family members instead. In other words, your death could end up being a severe financial burden on your loved ones.
It Will Make Up for Lost Income
When a money-making spouse dies, family income can be reduced substantially. This loss of income can drastically affect the family’s lifestyle, resulting in tough financial times.
Not only could the surviving family lose small possessions, but big possessions such as cars and real estate as well. Not to mention, they’ll almost certainly have to dip into their savings.
Want to keep your family out of this situation? Life insurance will allow you to do so. Should you leave family members behind, your life insurance policy will make up for your lost income.
It Will Eliminate Debt
Do you have substantial credit card debt? Maybe you took out a personal loan for a home remodeling project? Whatever the case may be, if you die with debt, it will be paid off via your estate.
That is, unless, you have a life insurance policy. Life insurance can cover your existing debts, ensuring that your family receives your total estate (well, minus estate taxes and the like). In essence, if you have substantial debt, you’re highly advised to take out a life insurance policy.
Looking to compare life insurance policies now? According to Ty Stewart from Simple Life Insure, you should avoid using life insurance comparison websites, as these websites often sell your information to companies that will pressure you to buy their insurance. Instead, you’re advised to turn to an insurance agency.
It Will Help Cover Your Kids’ Expenses
No one wants to die before they’re able to see their kids lead adult lives of their own. Unfortunately, tragedies happen. As such, you need to be prepared to support your children in the event of your early death.
A life insurance payout could cover a variety of expenses for your children. It could help send your kids to college, for instance. It could also serve as a beneficial inheritance, helping your kids to make it through hard times.
It Will Keep Your Business Afloat
Do you co-own a business? If so, you and your business partners are advised to take out life insurance policies on each other. That way, should one of you die, the others will be able to buy your shares in the company without spending additional money.
If one of you should die without a life insurance policy, the others would have to spend their own money to keep the business afloat. If they can’t afford to buy said shares, they would have to sell those shares to external individuals. In the long run, this could sink the business.
In short, life insurance will protect you and your partners’ business interests, ensuring that you maintain control once one of your partners is gone.
It’s a Good Investment
Often times, individuals avoid getting life insurance because they think it’s going to be expensive. In truth, however, life insurance is quite affordable. As such, it’s generally a good investment.
At the present time, the average life insurance premium on a $250,000 policy comes in at around $67 per month. Generally speaking, the older you are, the more you’ll pay. That being said, you’ll still be paying under $200 a month through the age of 65.
This is a small price to pay to provide your family with financial security.
It Will Help You Sleep at Night