Why Should You Buy Life Insurance?

Why Should You Buy Life Insurance

Unemployment, confusing products, high premiums and denied claims are some of the reasons people give for not buying life insurance.

However, many people who go without this type of insurance actually need it.

The following are some of the common reasons why you should buy life insurance:

Final expenses

Medical bills, funeral expenses and burial costs could come down to a hefty amount, especially when a death is unexpected. When you buy life insurance, you can be sure that your loved ones will not be forced to shoulder this burden, and you can choose death benefits to meet your preferences.

Income replacement

Most couples plan for a future that is based on two or more source of income, but this is not always the outcome for everyone. One of you may pass away unexpectedly, leaving the other to take care of the children and take care of any other expenses and debts. Relatively young breadwinners with mortgage obligations, college tuition and other expenses that may require a backup plan should definitely consider buying life insurance.

Mortgage protection

If you are living with your family, spouse or partner, you can buy life insurance to act as mortgage protection. Term life insurance could pay off any outstanding mortgage balance as long as you select a period equal to the length of the mortgage payment period. In addition, life insurance would be a good option if you have substantial assets since it could help cover estate taxes for your heirs.

College and School funding

Tuition rates today are anything but cheap, which is why this should be a priority if you have children. Life insurance benefits could fund your children’s college education should you die. If you buy life insurance early, the death benefit could be invested so that it grows to the amount required when your children join college.

Choose the coverage amount

Most people buy life insurance following a major life event as opposed to planning ahead. Although it can be challenging, it is important to determine how much coverage you need. Consider how much your dependents would need if you were not around.

Choose the type of coverage

You can choose between term life insurance (provides coverage for a set number of years in exchange for fixed premiums) and a permanent insurance product (combines life insurance with what might be considered a savings plan). Once you buy life insurance, you should consider it a part of your financial plan. Click here to check your circumstances every year or even annually for changes that might affect your life policy. Read: How To Get A Mortgage After Bankruptcy

Choose the insurance provider

Once you have determined what you need in your life insurance policy, you can start shopping for the best deal. The best place to start your search would be the internet, since you can get life insurance online quote from various insurance providers. Comparison shopping is highly recommended, but be careful to compare between similar policies with the same coverage amounts and options. Buying life insurance has never been easier and you get to avoid pushy salespeople.