Life insurance is invaluable and every American should have it. Unfortunately, more than 40 percent do not possess it.
The general public knows they are making a mistake by not carrying some form of life insurance. The same study shows that 84 percent of Americans say you should carry it.
The truth is that you cannot adequately support and care for your loved ones without it. In the event of a tragic death, how can your family carry on without a security net?
Read on to learn why life insurance is important. Explore why you need life insurance and how it protects your family in the event of a tragedy.
Protecting Your Family
This is the number one reason to take out life insurance. Without it, your family may be consumed with debt and funeral expenses. In addition, they will lose a significant portion of your recurring paycheck.
At a minimum, loss of income threatens your family’s quality of life. In the worst case scenario, it may leave them bankrupt and facing repossession of assets like vehicles.
Regardless of the occupation, it is important to possess life insurance for both marriage partners. If both are working, an unexpected death results in loss of income. If one parent stays at home with the children, the other faces increased child care and housekeeping expenses.
Give Your Children an Inheritance
A life insurance policy is also a vehicle to provide an inheritance. Without your biweekly paycheck, your children are stripped of college or wedding savings.
You no longer possess the ability to give them a financial gift. This can be addressed by structuring your life insurance policy as an inheritance.
You can name your children as beneficiaries so that they receive a portion of the life insurance payout. Without the need to cover family members, you can also find a cheaper policy premium.
Life Insurance Is Valuable for Individuals
Some people mistakenly believe that life insurance is for families only. The sad truth is that passing away is expensive.
The average funeral costs range from $7000 to $9000. Costs can quickly exceed $10,000 depending on the choices that you make. For example, a high-quality casket is certain to drive funeral expenses up.
If you tragically pass away, someone is left with these expenses. In most cases, the financial burden is left to parents or siblings.
Also, you may leave loan cosigners in debt by passing away. Taking out life insurance is the most effective way to prevent this from occurring.
Give Yourself Peace of Mind
A person can go crazy thinking about life after death. People without life insurance spend hours stressing about what will happen.
They ask themselves, what will happen to their home and belongings? By taking out a life insurance policy, you can rest easy knowing that your finances will be taken care of.
A word of caution is that this does not mean to act recklessly. Instead, check out this article why a safety culture is also important.
A Recap of Why Life Insurance Is Important
Life insurance is an effective way to protect your family against financial burden. A sufficient policy will cover funeral expenses and provide your loved ones with a nest egg for college or a wedding.
If you enjoyed this article about why life insurance is important, explore the other areas of our blog for other great content.
