10 Reasons Why You Need Life Insurance

More and more people are becoming aware that life insurance is a need. If you are looking to invest in your first policy, let us list down the reasons why getting life insurance would be the right thing to do. 

Top 10 reasons why you need life insurance

To cover burial expenses. 

A person would need to make sure that their surviving family will not incur debt just for funeral and burial expenses should they pass away. Along with this, the convenience of having a life insurance plan would allow the family to grieve in peace, without having to worry about any funeral arrangements.

To pay off debt.

We have all been there, we would all need money one time or another. So we would borrow from friends or take out a loan. It would be important to pay off these debts so that when we pass away, our insurance policy will not be used toward the payment of any of these debts. The money should be given as a whole to the family of the policyholder. The cash benefit is never meant to be used to pay off any outstanding debts of the policyholder.

College planning.

If you have children, life insurance would be a great investment that you can get for them. Part of the premiums that you pay could be allotted to go toward a college fund that is set aside for your children. Keep in mind that college can be very expensive, depending on the course that your children will take. You would need life insurance to make sure that you will be ready for that expense when the time would come.

Cash value. 

Life insurance will almost always have a cash value attached to it. This cash value will be taken out of the premiums you pay. If you would need money, you can be able to borrow against the cash value of your insurance plan.

Invest.

It is difficult to invest because there is a risk to it. However, you would need to make an investment because it is impossible to become financially stable with your salary alone. A life insurance investment would have minimal risk but guaranteed gains.

To save.

No matter how much you earn, it would be difficult to save because it is so easy to spend money nowadays. Online shopping is popular now, so is using credit to buy now and pay later. Life insurance would be a good way to generate savings because you would pay your premiums as an expense, but those premiums would also be going toward savings.

Long-term needs

Life insurance is supposed to be in place to make sure that all the long-term needs of your family will be met, even after you pass away. 

Short-term needs

If you suddenly pass away, are you sure that your family will still be able to continue living, even without the income that you provide? If you are unsure about the answer to this, you need life insurance.

For your business

If you are a business owner, you have to think about how much your business would need in case you die. This is especially true if you are a sole proprietor. However, even if you have partners, it would be wise to have life insurance to make sure that your business would be able to survive and continue paying for its payables, such as taxes, even when you would be gone.

Peace of mind.

You need to have life insurance so that no matter what happens to you, you can be certain that your family will still be taken care of.