You might be wondering why you need to buy life insurance. The essential point of life insurance is that it provides cash to your family and loved ones in the event of your death.
At the heart of it, it is a way of taking care of those you love and ensuring them a stable and sound future.
Designed To Protect Your Loved Ones
Life insurance is actually designed for the living. It is a tool that can protect your spouse and children from a potentially devastating financial loss should they lose you prematurely. Life insurance can provide the money needed to continue paying large expenses such as a mortgage, car, and even schooling. It provides a safety net for your family.
Life Insurance Also Provides Times
All too often, if an income earner dies, the survivors find themselves in a position where they are required to make tough, dramatic decisions quickly. Having a life insurance policy in place will not only provide cash benefits to help pay off debts, but it will also provide time for the family to adjust and not have to make life-changing decisions quickly – decisions such as whether or not to find a new job or downsize the house.
Can Help You With Estate Tax
Another way that life insurance can help, unrealized by many, is that it can help pay estate taxes that incur when there is a transfer of property. Without life insurance, many people find their property in the hands of the government because they are unable to pay the estate taxes. These taxes are charged on the value of the estate of a deceased person before it can be distributed to their heirs.
Lock In Rates While You Are Young
It would be easy to think that you don’t need life insurance until later in life. Additionally, many twenty-somethings think they are invincible. However, it is important to purchase a life insurance policy early on in order to lock in lower rates. Once you reach 50 or older, it may be hard to find rates you can afford. Most life insurance policy premiums are based on both your age and your current health. Waiting until you are older will result in higher premiums.
Nobody likes to think about aging and death. However, as we get older it is important to face reality and plan for the inevitable. More importantly, life insurance isn’t about you, it’s a mature way of taking care of the ones you love and ensuring a solid life for them should something happen to you. Don’t hesitate! If you’re married and own a house, or more importantly, have kids, start looking into life insurance to protect their future. You’ll feel better knowing it’s in place and is there as a safeguard for your family.