If you are responsible for the financial support of another person(s) then you need to invest your time into getting the right policy for you. Below are 7 reasons why life insurance is an important part of taking care of your loved ones after you’re gone.
1. Replace your income
If you are the main source of income for your loved ones, then you want to make sure that they’re taken care of after you pass. Life insurance can help cover living expenses and can even mortgage costs.
2. To pay off expenses
When you pass your debts and expenses don’t just go away. Your funeral and burial cost can cost thousands by themselves. Life insurance ensures that your family won’t fall into debt while trying to pay off your expenses.
3. Leaving behind an inheritance
You can create an inheritance when you buy a life insurance policy. This is a great way to make sure that your loved ones have a solid financial future if you don’t have any other assets to give to them.
4. Estate taxes
If you do have an inheritance to leave behind, your heir(s) might be subject to estate tax. An estate tax applies to a person’s assets if they reach a certain amount. This can cause your heir(s) to lose out on 40% or more of their inheritance. Life insurance can cover the estate tax ensuring that your heir(s) get their full inheritance.
5. Protect your business
If you own a business or have a business partner you should apply for a life insurance policy that protects your business obligations. If you are a key employee in your business, your sudden passing could be devastating. Imagine your business partner takes out a life insurance policy on you, and maybe a few years later you pass unexpectedly. The insurance policy can help cover the cost of buying your shares in the company, paying employees, and overall help provide a steady transition into a future that you are no longer had you in it.
6. The earlier you buy the cheaper it is
Many insurance companies recommend that you buy life insurance in your 20’s or 30’s. The older you are the more expensive your insurance premiums will get. Buying life insurance when you are younger will help you save money in the long run.
7. Peace of mind
Overall, having life insurance gives you peace of mind. You never know when your health might take a turn for the worse. Life insurance allows you to not have to worry about the financial security of the people you love after you’re gone.
Remember, life insurance is more about the people you leave behind instead of yourself. If you believe that your sudden passing could be devastating to your loved ones make sure to do extensive research to find the life insurance policy for. Don’t forget the earlier you get life insurance, the better off you are. If you have any questions about life insurance and policy options, consider contacting one of our insurance experts!