8 Reasons to Get Life Insurance

by Jason Butler on February 12, 2016 · 2 comments

8 reasonsLife insurance is a contract with an insurance company. The company promises to pay a designated beneficiary a sum of money in exchange for a premium upon the death of the policyholder. There are many reasons you should get life insurance. Today, I will go over a few of them with you.

Funeral costs

The first reason that you should get life insurance is to help offset the cost of funerals. They are not cheap by a long shot. The average funeral costs over $6600. The life insurance policy can help pay for your funeral and burial costs. Your family will be glad that you purchased one.

Supplement your income

The second reason that you should get life insurance is that you can use your life insurance to supplement your income. It can help with numerous financial obligations such as your kids dental or doctor’s visits.

It can protect your loved ones

The third reason to get life insurance is because it can protect your loved ones. It will help them out financially during their time of need. The life insurance policy could protect your spouse and children from financial problems if you pass away unexpectedly.

Provides a peace of mind

The fourth reason that you should get life insurance is that it provides a peace of mind. With life insurance, your family won’t have to worry how they are going to pay for your funeral and burial. Life insurance takes care of all that for them.

Life can be unpredictable

The next reason to purchase life insurance is because in life anything can happen. Life is unpredictable. Things happen outside of our control all the time. Life insurance can help your family if the unexpected does happen.

Provides a cash value

The sixth reason that you should consider life insurance is because it provides cash when it is needed the most. During your time of need, the policy will pay the benefits to the beneficiary. Different plans pay out different amounts. Make sure that you do your research and pick the best one.

Create an inheritance

Another reason you should purchase life insurance is that you can create an inheritance for your heirs. All you have to do is name them as beneficiaries on you policy.

Pay off estate taxes

The final reason that you should purchase a life insurance policy is because your family can use the money to pay off estate taxes. Those taxes could fluctuate depending on a person’s lifestyle. Estate taxes is something that your family may not have the money to pay for out of pocket. The insurance will take care of that for you.

To summarize, the reasons to get life insurance are to help with the costs of funerals, to supplement your spouse’s income, to protect your loved ones, to provide your family with a peace of mind, to help your family if the unexpected happens, to provide your family extra cash, to provide an inheritance, and to use the money to pay off estate taxes.

Do you have life insurance? Why or why not?

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{ 2 comments… read them below or add one }

1 Money Beagle February 12, 2016 at 9:07 am

Both my wife and I have policies, which we made sure to get after we had kids and realized that if one of us were to pass away, the other would need financial help to keep things moving smoothly on that end. Hopefully we never have to use it!

2 Joe Lawrence February 12, 2016 at 2:57 pm

The number one reason to get life insurance is to replace the missing income of the person no longer around to earn a living. It’s good to cover funeral costs, but suggested to have enough coverage to last the surviving spouse until the children are of age. If if no kids, then at least 10 years. As a DINK, both partners are working, so the other may not be as dependent upon their income, but still good to have for peace of mind.

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