Life insurance is a vital need, but it simply wasn’t that way even one or two decades ago. In the past, life insurance was considered to be something that only people of advanced age purchased. However, there have been many changes over the past few years, and life insurance has become a must-have in most instances.
To plan for retirement
First of all, there is the undeniable fact that lives are changing. People are having children at later ages (which means they will be around longer to take care of them), and people stay in monogamous relationships for extended periods of time (instead of getting married and divorcing within five or ten years). These are just a few reasons why everyone should consider life insurance to secure their future. Moreover, people are living increasingly healthy lifestyles (meaning that they will live longer and require more money to provide for them in their golden years) and retiring later in life. This means that if a person is expected to live long enough to be taken care of by another individual (due to not having saved enough money), he or she will need life insurance.
Retirees face challenges such as rising medical costs and inflation as well as estate taxes. Life insurance provides a safety net for these concerns as it can be used to pay off debts at death, reduce or defer estate taxes, buy an annuity that pays tax-deferred cash payments each month for life, or provide post-retirement education funds for grandchildren or others under your care.
To protect your immediate family members from losing their home
If your family’s breadwinner dies, many financial issues will crop up, and not the least of them is keeping a roof over the head of those who you leave behind. Your family needs a steady income, and unless they have their own savings to rely on, they need life insurance. Along the same lines, there is an increased demand for life insurance because of higher debt levels. Many people have large mortgages, more car bills than ever before, student loan debt – the list goes on and on. Nowadays it’s not unusual for family members to co-sign loans for children who are attending college or buying homes with first-time home buyers. This means that if a person dies, not only will there be a loss of income due to his or her passing, but also an increased financial burden on the family members who are left behind. If you owe money on a loan, such as for your home or car, having enough life insurance can help pay off those loans after death (so long as there’s enough money left after the funeral). By doing this, you’ll be saving your heirs from possible foreclosure and repossession of their car.
To protect your heirs from losing their inheritance
Should you pass away suddenly and unexpectedly, it’s possible that the first notice anyone receives of your death is when they open an envelope containing notification that all or some of your assets will not be available for distribution because they’re being held in probate. Without proper planning, this could happen even with a valid will in place. Your heirs may also not know about certain debts and other factors that affect the value of your estate. Life insurance provides a solution to these problems as it can be used to pay off debts, provide liquidity for estate taxes and cover the expenses involved with transferring property.
To ensure your business will keep running smoothly
If you’re self-employed, you know how important regular income is–and how devastating it would be if you were unable to work due to illness or injury. In addition, if your business fails because you cannot continue operating it due to death or critical illness, life insurance can help protect your employees from financial hardship and give them time to search for new employment.
To cover an unexpected loss of income
If a breadwinner in the family becomes seriously ill or is injured in an accident, the family could face serious financial problems if they lose that person’s income. Life insurance can help by replacing lost income so you can pay your expenses, including mortgage payments and other necessities.
To give yourself peace of mind
With life insurance, you can choose a death benefit large enough to allow your survivors to maintain the lifestyle you planned for them–no matter what happens after your death. Plus, it gives you added security knowing that even if something unforeseen occurs, your family will have the money they need to live comfortably.
Life insurance has become easier to purchase
Perhaps the most convincing reason why life insurance is becoming a must-have is that it has become easier to purchase than ever before. In addition to policies becoming less expensive with age (most individuals in their 20s and 30s cannot afford $100/month premiums), life insurance can now be purchased online in just minutes and for no cost at all. There was once a time when you had to go through an agent and sit down with them face-to-face to buy a policy; this usually took several days at least, and often weeks depending on the agent. Now, however, you can go through a company that specializes in providing life insurance quotes and have a policy within a matter of minutes. You simply provide your zip code, sex, age range, and smoking status (if any), and you will be presented with a list of available options from different carriers – all of which meet your criteria. From there you choose the policy that has the lowest premium or best deal for what you need, purchase it online using a credit card or e-check if so desired, print out the new policy documents from home and send them off to be notarized – voila! Life insurance has never been easier to purchase than it is now.
The reasons listed above are only a few of the many reasons why life insurance is becoming a must-have in today’s world. Although life insurance was not always considered a necessity, it’s now something almost anyone can afford and will be very beneficial for one’s loved ones if something should occur. In short, consider yourself lucky that you have come across this article – not only to help educate yourself on what types of products are available but also to ease the minds of your family members around you.