6 Reasons You Should Buy Life Insurance

1. If you don’t think you need life insurance talk to someone who has had a spouse pass away without a life insurance policy; you most likely will change your mind.  If that spouse happens to be the main breadwinner, the challenges are even more difficult for the surviving family members.  You insure most of your other assets, home, car, toys, business, you should ensure your most valuable asset, yourself!
2. Buying the coverage now will cost less than if you wait a few years.  The younger you are, the lower your premiums will be and you can lock them in for up to 30 years in some cases.  This means you can buy more coverage for your premium dollar.  Waiting also means you might miss your opportunity.  If you come down with a terminal illness, it will be too late to buy insurance to protect your family.  That is akin to trying to purchase home insurance when your house is on fire; it’s too late.  Don’t wait.
3. Coverage you have through an employer may be insufficient and not follow you if you leave. Group insurance offered through your employer has often limited coverage, meaning you won’t be able to get enough to protect your family or pay off your debts should something happen to you.  Also, most group life insurance is non-transferable, meaning if you leave your job or are terminated, bye-bye life insurance policy.
4. Certain types of life insurance policies can help you save for the future. Don’t get me wrong, the main purpose of the life insurance policy is to pay a benefit to your beneficiaries should you die.  However, as a secondary feature, building up a cash value in a whole life or similar permanent policy could help those who are less disciplined and struggle to set money aside in more conventional investments like mutual funds or other investments.  Our philosophy is to buy term and invest the difference in mutual funds or other equity products, but if you just find that you are not disciplined enough to invest, but you are disciplined enough to pay your life premium, this might be the last case resort to help you save.
5. Pay off debt. Although this is really tied back into the number one reason to purchase life insurance is worth mentioning in its own paragraph.  If you die and you have debt, think of how that would leave your surviving spouse and/or children strapped in a bad way with no ability to pay.  Your lifetime earnings are probably quite substantial.  You may have a mortgage, car loans, student loans, credit card debt; these things don’t just disappear because you do.  Your loved ones will be left with a millstone hanged about their necks.  Life insurance can take away that millstone.
6. Legacy and Estate Planning. If you pass away without life insurance, it may be difficult for your children to attend college or do other things you had planned for them.  Again, refer to number 1 above.  Everything becomes financially difficult for the survivors of someone who passes away without life insurance.  Your family will grieve your loss but don’t make them go through the emotions of resentment that you left them in such a bad situation.

Life insurance is perhaps the most economical way to transfer risk from your family to an insurance company.  Talk to an expert today about getting a life insurance policy in place.