Getting life insurance can be a tough decision for many people. If you are not sure of the reasons why people get life insurance, then read further for a better understanding.
A big reason why people have life insurance is because they want to provide financial security for their family when they pass. Let’s face it, there are expenses and emergencies that you cannot predict. When you have a life insurance plan, you are making sure emergencies don’t leave your future generations struggling to pay for unexpected costs.
When you pass, a funeral is being planned right away. The last thing your family needs is to stress about paying for the venue and setup. Whether it’s a celebration of life or a funeral proceeding, your family should be able to mourn your passing properly. Most people do not think about prepaying for burial expenses, so having life insurance guarantees that costs are covered when they arise.
When you pass away your debt does not always disappear. Sometimes a family member or spouse is responsible for the leftover costs. This is particularly popular with reverse mortgages, or other types of mortgages. Life insurance takes care of these lingering debts so that your family is not entirely responsible for what needs to be paid off after you pass.
With the rise in tuition every year, your children and grandchildren may have to opt for government and or private loans. The best-case scenario is that they won’t have to take out any loans where compounding interest hurts them in the long run. Life insurance could be the boost they need to afford an education. It can also help with any housing costs near their school.
According to The Bureau of Labor Statistics, in 2018 48.8% of families reported that both the husband and wife were employed. If a spouse were to pass on, their life insurance plan could help compensate for the income loss. In turn, assuring the person they were married to does not have to pick up a second job or seek out other forms of financial support. Life insurance also makes sure the person you are married to can continue living comfortably, especially if they need to care for children.
Contrary to popular beliefs, life insurance is more affordable than you think it is. Thanks to the many different types you can decide upon whole, term and universal life insurance plans. Term is the more affordable option for many, but it also depends on your age. The younger you are the lower your premiums will be, which is why it is important to get life insurance as soon as you can.