For many individuals, their first encounter with life insurance is when an acquaintance or friend obtains an insurance license. This is unfortunately how most people learns about and acquire life insurance. They do not always choose to buy it, but it is sold to them rather. However, is life insurance something that one really requires, or is it simply one of life’s inconveniences that are often shoved under your nose by an optimistic salesperson? While it may seem that the latter is the case, there are various why it can be beneficial to purchase life insurance and why it should be bought by choice.
Top Reasons Why You Should Consider Buying Life Insurance
As you get older, get hitched and start a family and sometimes start your own business, you start realizing that life insurance is indispensable and is a fundamental part of any sound financial strategy. Life insurance can give you self-assurance and peace of mind, knowing that your loved ones will have funds available when something happens to you and that your estate is protected in various ways, including:
Being Able To Pay For Final Expenses
The cost of a funeral and burial can quickly add up and can easily amount to tens of thousands of dollars. The last thing you wish for is that your parents, wife or kids must suffer financially besides mourning your passing. If your wish is to be cremated, you can look into obtaining a cremation insurance policy.
Capable Of Taking Care Of Your Children’s Expenses
Like many fathers out there, you want to have assurance that your children will be well taken care of and that their college tuition is taken care of. For this reason, extra cover is a necessity while your children still live at home.
Substituting Your Spouse’s Income
If your spouse passed away while your children are still young, it would be necessary to substitute her income, which was crucial to your lifestyle. You also would have the need for a domestic to take care of cleaning, cooking, laundry, taking kids to the doctor, or assistance with their schoolwork. Having the funds to pay for additional hired help can be incredibly useful.
Paying Off Your Debts
Besides providing extra income to cover your day-to-day expenses, your family will also require insurance to cover your debts such as the mortgage so that they are not in the position that force them to sell the home.
Being Able To Purchase A Business Partner’s Shares
If you are involved in a company partnership, you will require insurance on your partner’s life. In the event of him passing away, you will have the funds to purchase his shares in the business form his heirs and pay for his share of your business obligations without the need to sell the agency itself. He has the same requirements (in the event of you passing away), therefore he must buy insurance on your life as well.
Being In The Position Of Paying Taxes
Estate taxes can be expensive, therefore having insurance to pay for them is vital to prevent jeopardizing funds or assets built for your retirement. Using insurance for this purpose is commonplace in substantial estates and using permanent (as opposed to term) insurance can ensure that coverage stays in place until the end of life.
