“What is life insurance?” If you are asked this question, you might already know it. “Why do you need life insurance?” – this is a question that most people cannot answer right away.
As of 2022, only 52% of American adults have life insurance. It makes you wonder why 48% haven’t considered getting one. People hesitate to buy insurance because they do not understand potential financial risks or have not had the experience of being educated about life insurance at all.
If you are still unsure of whether or not to avail of a life insurance policy, or you are contemplating getting one already but still need that little push, we’ve got you covered. Here are some reasons to help you reflect on why you need a life insurance policy:
1. Financial Contingency for Your Loved Ones
If you are the breadwinner among your family members, you would always have your family’s welfare as a priority, and part of this is making sure that they are secured even if you are already gone. One of the primary reasons people get a life insurance policy is to ensure that it would financially take care of their loved ones in the event of death.
Your children might be dependent on you for their tuition or allowance needs, and your spouse may be asking assistance from you for other expenses involved in maintaining the household. Indeed, having life insurance would benefit your family in case of your untimely demise, as the death benefits attached to the policy will cover lost income and funeral and burial expenses.
The right time to get financial security is now, as you may never know what to expect at any minute, hour, or the next day. You can compare life insurance quotes by contacting insurance agents you know or asking for a referral from any insurance agency.
2. Leave Behind Something for Your Heirs
One of the features of a life insurance policy is to name your loved ones as beneficiaries for the insurance proceeds. This somehow operates as an inheritance you leave behind for your family, as proceeds in general under life insurance are payable upon the policyholder’s death.
Even if you do not have assets throughout your lifetime that you may pass on to your heirs, you still have something to leave behind. This is a great way to help your family members get back on their feet after you are gone.
3. Bills and Debt Payment Assistance
In addition to securing your income through an insurance policy so your beneficiaries may receive proceeds, your insurance will also help pay off loans and debts that you might leave behind.
If you have a car loan or credit card debt, your obligations won’t be extinguished even if you pass away, and someone would still need to pay for it. In many cases, settling debts is often shouldered by the spouse or partner or by the parents or siblings if one is single. Life insurance can help cover the costs for payment of these outstanding financial obligations.
4. Protection from Other Contingencies
Certain agencies can bundle certain types of life insurance with other types of protection. Standard insurance that is often paired with life is an accident or disability insurance. This helps cover a portion of your salary that you may lose in any scenario where you may not be able to work due to an accident or catastrophe.
5. Peace of Mind for You and Your Family
Without a doubt, having a life insurance policy will bring you peace of mind as the head or breadwinner and your family. Knowing that an insurance policy will take care of things financially if you may be gone the next minute will help you sleep soundly at night and, in some way, lessen your worries about the future.
Takeaway
Life is too short. We may never be sure of what will happen in the future. However, having life insurance is one thing you can be sure of to keep your family protected and secured. Life insurance prepares your loved ones to face the unknown even while you are gone and help them get through the difficult and painful time of losing someone they love.
