Why Buy A Life Insurance Policy?

You’re relatively young and fairly healthy, so why buy a life insurance policy now? Several reasons come to mind, beginning with the fact that even the healthiest individual can be involved in a fatal accident at any time, including today on the commute home from work.

Another reason to buy a life insurance policy now is that premiums generally increase with age.

Interestingly, many people tend to overlook the most important purpose of life insurance. The right policy can protect your family when you’re no longer able. To think of it another way, when you buy a suitable life insurance policy, you also buy peace of mind.

Ensure your family’s financial stability

You should start thinking about buying a life insurance policy if you have children under the age of 18, if you are just in the family planning stages or if you have already decided that having a child isn’t right for you. Life insurance is also a good idea if you have adult children who for one reason or another still rely on you financially.

If your family depends on the money you earn, buying a life insurance policy is one way to ensure they’ll continue to receive financial benefits even after you die. But what if you’re a stay-at-home mom or dad? You technically don’t earn a paycheck so you don’t contribute financially to the family. Do you still need to buy a life insurance policy? The answer is yes and here’s why.

Your loss of life will be felt in other ways. Take a moment to think how much it would cost your surviving spouse to hire all the services you provide on a daily basis: personal chef, scheduler, errand runner, event planner, financial planner, tutor, and all the other roles you play in your family’s life.

Life insurance can help your surviving spouse cover these expenses so your family can continue with the quality of life to which they’ve become accustomed.

Several more reasons

When you buy a life insurance policy, your beneficiaries can use the money to cover the bills you leave behind. Believe it or not, the costs associated with your funeral and burial will likely reach many thousands.

In addition, there may be costs involved in settling your estate. You may have medical bills that your health insurance did not cover or other types of debt. When your loved ones are grieving, they don’t need the additional burden of worrying that these expenses may potentially spell financial ruin.

Here’s another reason to consider. When you buy a life insurance policy it can be used as a way of leaving something of value to your heirs. All you have to do is name as beneficiaries the individuals you choose to inherit your policy.

Or, instead of naming individuals as beneficiaries of your life insurance policy, you could choose a charity as the beneficiary.

Given the above reasons, buying a life insurance policy just might make sense after all!

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