November 23, 2022
  • November 23, 2022

Why it is important to have life insurance

By on October 28, 2022 0
Man taking family portrait in restaurant
Life insurance – in the right amount – is essential for a variety of reasons.

Thomas M. Barwick/Getty Images

Life insuranceeven more than car, travel or even animal insuranceis essential to get it right.

While each type of insurance is important on its own, policyholders of these latest policies can always adjust their coverages after an accident or for their next trip or just before getting a new dog.

But life insurance, although flexible during his lifetime, will not be adjustable after the death of the insured. At the moment, beneficiaries will only receive what is listed as available (assuming no cash deductions have been done).

This is one of the main reasons why it is important to have life insurance. Policyholders essentially leave a final lump sum of money for their loved ones to use after their death. It is vital that this amount – and the type of policy it is related to – is the good one.

If you are in the life insurance market – or just want add more coverage to what you already have – Speak with a life insurance adjuster now. They can answer all your questions and help you start with a free quote.

Why it is important to have life insurance

Life insurance is essential for a variety of reasons. Here are three main ones:

It can protect your family

It may seem obvious, but many people don’t have enough life insurance to provide long-term protection. In many cases, an employer-provided plan is simply not enough. Even savings and retirement investments like Roth IRA or one 401(k) probably won’t be tough enough to protect your family for years (and, perhaps, decades) to come.

Fortunately, life insurance comes in all shapes and sizes, and depending on a series of factorsyou can potentially benefit from hundreds of thousands of dollars of protection and possibly more than $1 million. Compare the amount you could get from a term life insurance policy, for example, to your current savings and future income projections. It’s easy to see the benefit of having a policy in place.

Speak with a life insurance expert today who can help you build a plan that protects your family.

He can repay the debt

The death of a loved one is bad enough for family members. You don’t want to add to the burden by putting them heavily in debt. Millions of Americans have outstanding mortgage and student loan debt. Millions more have credit card debt. It’s not something you want to pass on to your spouse and children.

But with a life insurance policy in place, you may not have to. If you are young and healthy, you can qualify for a plan which will cover both what’s left on your mortgage and student loan and more.

It can be unpleasant to think about it while alive, and many recipients won’t even think about it after the death of a family member. But sooner or later the bills will come due. Fortunately, with a life insurance policy in place, your loved ones will be able to continue paying even when you’re away.

He can maintain a standard of living

This factor is often overlooked when trying to determine the right amount of life insurance to purchase. But you should seriously think about it anyway.

Yes, you may be able to get a plan that protects your family and pays off your debt after you die. But what if you want your plan to do more?

Think about all the things your income is currently being used for that aren’t just mortgage and loan payments. Now take your income out of the equation and see if your family can maintain their standard of living without you. If they can’t, you’ll want to make sure you have life insurance in an amount that can support them.

This doesn’t necessarily mean that you need a policy for your beneficiaries to lead lavish lives. It is not mandatory. But you’ll want enough to help pay the bills, groceries, pet care, and more.

Talk to a life insurance professional now who can help you determine the right amount of coverage you need.

The bottom line

Life insurance is an essential part of good financial planning.

Make sure you have a policy – for the right amount – in place now. Plan for the future and protect your family. It’s easy to get started!