Life insurance, the product that everyone needs, but far too many people don’t have. Putting off buying life insurance when your young and healthy is easy, but the longer you wait, the greater odds of something happening before you get covered. If life insurance has been on your mind, but you just haven’t gotten to it, here are 10 reasons why you cannot waste any more time.
1. Income Replacement:
The amount of money that you bring into your household is vital to paying the finances. If you die, it needs to be replaced and life insurance is a great way to do this. If you have loved ones that rely on you financially, not having life insurance could put a financial strain well after your gone.
2. Funeral Expenses:
With funerals averaging around $10,000, not having something in place to cover a death could be a burden on your family. Funeral homes don’t mind doing burial services “pro-bono” while waiting for the funds from a life insurance policy. You can even assign the proceeds to the funeral home.
3. Debts Have to be Paid
If you are like many Americans you probably have some type of debt, whether it is a mortgage, credit cards, car or student loans, and even medical bills. These debts must be paid when you die by someone, usually loved ones. Life insurance is a great way to take care of these remaining financial responsibilities.
4. Rates will Change with Time
Probably the excuse we hear the most for someone not owning life insurance is that it cost too much. To be honest, life insurance is very affordable for most people, especially if you purchase when your young and healthy. Today your life insurance rates will never be any cheaper because as you age, the premium increases. The longer you stay put, the more it will cost.
5. Estate Planning
Life insurance can be used as an estate forethought tool. It can be used to fund a special needs trust to take care of a loved one after you pass away. It can also be used to pay estate taxes owed by your heirs on any assets they receive over the set threshold.
6. Own a Business
If you are a business owner, the life insurance is a must. Life insurance can cover any debts accrued from the business, while also giving capital to work with while adjusting to the unforeseen circumstances. If you are in partnership, a buy-sell agreement is vital to protect your loved one’s interests in the business. Life insurance is the play’s a key role in a buy-sell agreement.
7. To Build Cash Value
If you’re looking to build cash value for use later down the road, then a permanent life insurance policy might be the answer. Permanent life insurance builds up cash value over time, which is appealing to consumers who don’t like the idea of wasting money on a term. The cash value can be used anytime for any reason. It can be withdrawn, which will decrease the death benefit, or taken as a loan and paid back.
8. To Supplement Retirement
When many people purchase a life insurance policy, they are looking for the best company with the lowest premium. Many don’t realize that life insurance if funded properly, can be used to help supplement your retirement, tax-free. This can be confusing and is recommended to consult with an experienced agent to see if this fits into your retirement planning.
9. College Planning
If you have children, then you already know how expensive a college education can be these days. Most don’t even come close to saving enough money and will rely on loans and personal income to pay for their child to go to college. If you die, life insurance can fill the void.
10. Peace of Mind
This is probably the most important reason to purchase life insurance as soon as you can. No one likes to talk about dying, but unfortunately, it is inevitable. Having life insurance in place will give you peace of mind, knowing your loved ones will be financially sound if a tragedy were to strike.
Are You Ready?
Now that you have the ten reasons why should own life insurance, are you ready to start the conversation? If so, make sure to review all material in order to make the best decision for you and your loved ones. It is always recommended to work with an independent experienced agent, like us, Pinner Financial Services LLC to ensure you see quotes from multiple companies.