5 Reasons Why You Need Life Insurance

Life insurance is one of those things that you hear about often, and figure you probably need, but for whatever reason you just never seem to pull the trigger. Perhaps it’s a bit of a phobia – realizing that you will die relatively soon, or maybe you just don’t care for the extra payment that comes with life insurance each month. Whatever the case may be, it is still likely that you should have life insurance. Here are 5 reasons why:

1) Your Savings Wouldn’t Cover Your Own Funeral

As each month goes by, you might realize that your savings account will always look pretty bleak. If you died today, would have you enough money in your account to cover a $10,000 funeral? For most, the answer is likely, “No”. If this is the case, then perhaps a small life insurance policy would make sense. Those that are fronting the costs of the funeral would receive the funds from your life insurance policy to cover those expenses.

2) Peace of Mind For Your Spouse

Many times, insurance is simply assurance for your spouse. Getting through everyday life is hectic enough. Your spouse doesn’t also want to think about what he/she would need to do if you died next week! Insurance can often make a relationship much less stressful because there is never a question of what would happen financially when you are covered by life insurance. Do you want your day to day life to be more peaceful? Then perhaps you should buy life insurance online to mitigate those concerns!

3) You Have Kids That Are Costly

If you have small children, then you know they can be costly. Clothes, food, shelter, diapers – these items can really add up! And, what about their college funding? Is that in place? Again, many may not have considered this costly future event. If you planned to help your kids out with college and it would have been a struggle while you were alive, what if you passed away? Do you think your spouse would be able to afford that additional cost? Life insurance can be a possible solution for this scenario as well. Since the insurance company would pay out as a lump-sum, this amount could, in theory, be applied to the college tuition. Your kids would definitely love you for taking care of their steep college costs!

4) Your Work at Home is Worth Much

If you are a stay-at-home mom, you might not receive a weekly paycheck, but your services are definitely valuable! Think about how much it would cost to put your kids in daycare every month. Many times, this cost can be $1,500 or more! If you were to pass away without life insurance, then this is exactly what it would cost for you since you would have to put your kids in daycare while working a full-time job to survive! It is not a pretty picture, and many people that are put in this situation sure wish they would have had life insurance.

5) You’d Like to Leave an Inheritance to Your Adult Children

There are many older adults that are starting to worry about the costs of health insurance and long-term care. Chances are, these items alone will eat up their savings accounts, allowing them to leave nothing to their adult children. If you are in this scenario, then perhaps a life insurance policy would be a feasible way for you to pass on an inheritance to them.

Don’t Wait Until It’s Too Late

We are all guilty of dragging our feet at times, but when your family is depending on us to cover costs and provide for their well-being, then dragging your feet simply shouldn’t be an option. Can you relate to any of the above reasons to buy life insurance? If so, then I would suggest talking to your family about it, and also to a certified insurance specialist. Setting up a policy probably won’t be fun, but it’s just a necessary step in being an adult and taking care of things, even after you’ve passed away.

Are you in need of life insurance today?

 

Common Ways to Put Aside Money for Life Insurance

Purchasing a life insurance policy is a wise idea for many people. For instance, the breadwinner of a large family may purchase a life insurance policy in order to provide for family members in case he or she dies. With the insurance money, the family would be able to pay the mortgage, car payment, property taxes, etc. A person who buys a life insurance policy should incorporate the monthly payments into the family budget. Take a look at some common ways that people are putting aside money for their life insurance payments.

A Savings Account

Some people find it convenient to put the monthly payments for a life insurance policy into a special savings account. This way, the money is available when then life insurance bill is due. Plus, the money can earn interest in this type of account. The owner of the life insurance policy may want to arrange to have the payment automatically transferred to the insurance company on a monthly basis.

A Special Envelope

There are some individuals who like to keep track of their personal finances in a more traditional way. For example, a person may put the monthly insurance payment into a special envelope and keep it in a safe or locked box at home. The envelope will have a label so the money isn’t spent on anything but the insurance payment. This method allows an individual to deposit the cash into a bank and pay the life insurance bill on time each month. If you’re interested in buying life insurance you may want to an insurance agent for more information on the different types of policies.

An Automatic Withdrawal

Many individuals like to keep the money for their insurance payment in their regular checking account. This way, they know where it is and can keep track of the total balance either online or by making a phone call to the bank. A person who uses this method may feel it’s more convenient to write several checks for bills each month. The life insurance payment would be included on the general list of bills.

Any of these methods makes for an effective way to pay the life insurance bill on time whenever it is due.