Life Insurance is the absolute best way to provide a source of funds upon unexpected death for variety of different situations. There are many different reasons to buy life insurance coverage but let’s go through some of the general 5 that entice people to get covered.
1. Family Protection
Whether you are single or married there is usually someone that will depend on you for your income.You might want to make sure that your children can go to college and that your spouse can continue maintaining the lifestyle you had together by replacing your income in case of the unexpected. Even single people with no children buy life insurance because they might be taking care of their elderly parents or relatives and helping them financially. The reason life insurance would make sense is to ensure that it can continue to happen even if you weren’t there.
2. Final Expenses
The average funeral can range anywhere from $9,000 to $15,000. In addition to that you might incur some medical expenses which were not covered by health insurance and also there can be a lot of admin fees associated with death. It can also help your closed ones take time of their job to grief properly and to organize a funeral. A lot of people will buy a policy just for this reason, so they don’t leave a burden to their family since the loss of the loved one is hard enough.
3. Debt
If you have a mortgage, student loans or credit card debt life insurance can be a great way to make sure it gets paid if something was to happen to you. A lot of married couples will buy term life insurance just to make sure a house gets paid off because that is a huge relief knowing your family won’t have to worry about a place to live. If you are a student you might want to get life insurance to cover the student loan if your parents were somehow involved in the loan. Before I forget since we are speaking about debt, life insurance can also help you get a loan because it can be used as a collateral.
4. Business
Yes businesses can and do absolutely use life insurance for many reasons. One way is some companies will buy a policy on their key employee since by definition this person is so vital to the organization it can affect the business negatively if he or she was to pass. Also an owner might want to get a policy on himself for purposes of business continuation. If there is a partnership you can have each partner buy a policy on the other so they can use the life insurance proceeds to buy out each others shares.
5. Charitable Cause
When it comes to life insurance and charity it can create such a powerful difference in the world. I am sure we all have a educational institution, homeless shelter or a cancer research institute that we would love to leave something behind. Can you imagine what impact an organization of your choice can make if they were unexpectedly to receive a check for few hundred grand or few a million.
There are a lot of reason to get life insurance especially in today’s world. I personally believe it is a true sign of responsibility that a person can show by securing a policy. There is no other financial product that I know of that for an exchange of a monthly payment can leave behind a large lump sum that can make such a large influence in the future of your family or society. It is also a the most selfless product because you truly do not get life insurance for yourself. In the end, you should get life insurance simply because it is the right thing to do, regardless of the reason.
