Why should I Buy Life Insurance? 5 Reasons to Consider
Why should you buy life insurance? I hear this question on a daily basis from prospective clients. In my opinion, it is a vital part of providing financial protection for your family. Let’s take a look at just a few reasons why having life insurance is so important.
To replace lost income: Can your household continue to live in the manner that they are accustomed without your income, should you pass away? Would your surviving spouse be financially stricken with your passing? If you had young children and a stay-at-home spouse, how would your spouse be able to take care of the children and be able to find employment? Would your surviving spouse be able to take care of any adult dependents that rely on your income? If you answered “no” to any of these questions, I would suggest looking into purchasing life insurance to provide your family some financial protection.
To protect your mortgage: If you have a mortgage, could your surviving spouse pay that mortgage on their own? Life insurance can provide you that financial security and peace of mind to know that your family can continue to live in the family home.
To pay for final expenses: Do you have the ability to pay for a funeral out of your own pocket? Can your loved ones afford to pay for your funeral? Again, if you answer “no” to either of these questions, you should look into obtaining life insurance coverage. Who wants to leave our loved ones with having to pay this expense. It’s going to be difficult for them, losing you without this additional financial burden.
To leave money for loved ones: By purchasing life insurance, you can leave behind money for your loved ones that are listed as beneficiaries. This money would be left for them tax-free and not subject to probate should you have a will.
To leave money to pay off any existing debt or tax: Your life insurance money can be used to pay off any outstanding debt or tax liability that your estate might have. By having this money, your heirs would not need to liquidate any assets that may have been left for them to pay off this debt of tax liability.
Now that you have had the opportunity to see just a few ways that the death benefit from life insurance can be used, think for a moment about how many of these apply to you.
About the author: Jim Marcinkewicz has been in the life insurance business for over 6 years. He is a big supporter of the American Red Cross and teaches both CPR and First-Aid classes. With two daughters in college, Jim knows the expense it takes to care for your family and enjoys helping others prepare their futures as well. You can reach Jim at 1-800-651-1953 or JMarcinkewicz@Pivot.com.