Updated: Jan 16, 2022
What is life insurance? Life insurance is a contract between an insurance company and the insured. The insured makes payments and the insurance company will then provide a sum of money designated to a beneficiary after the death of the insured. Having life insurance is extremely crucial especially since you never know what will happen in life. Here are five reasons why you need life insurance.
1. To Protect Your Loved Ones
If your loved ones depend on you for financial support and decisions, then getting life insurance is a must. When you put it in your family’s point of view, having life insurance will help cover what they need if you’re not by their side one day. In other words, life insurance is able to restore the income that you have for your loved ones if you die.
2. Cover Debt
Debts will still be ongoing even if you happen to pass away. Debts you have might range from mortgage to credit card loans. If you and your spouse co-signed any important agreements together, your spouse will have to cover the remaining debt if you die. Life insurance will help lessen the burden of debts in case anything happens.
3. Cover Funeral Expenses
Funerals may be costly, the cost of a funeral may range from $6k to $10k. With life insurance, your family can use some of the death benefits to cover a reasonable amount. This will ease the financial stress your family may encounter as well.
4. Retirement Planning
As you get older, you will start thinking and planning out your retirement. With fitted life insurance types such as whole life insurance, cash value will be accumulated. The right policies will allow you to use your cash value towards your retirement stage.
5. Safety Net
Life insurance serves as a safety net for guaranteed financial protection in case anything happens one day. Life takes unexpected turns, nothing is certain but having life insurance will definitely bring you and your loved ones peace. Put your future and loved ones at ease, speak to one of our agents and get more information on life insurance today.