7 Surprising Reasons Why Life Insurance is a Must-Have
Written by Daniel Ray, Life Insurance Expert |
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Fact Checked by
Lisamarie Monaco |
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If you are thinking about getting a life insurance, here are the 7 surprising reasons why life insurance is a must-have that will help you decide.
Most people are not thinking about life insurance in their 50s because most people’s health declines as they get older. The more time to buy the insurance the bigger its initial price.
For a term insurance policy, the average person paying will be around $10-49 per month.
That’s less than a gym membership that will protect your family’s financial stability in your absence in the absence of a doctor when they encounter medical emergencies here or overseas.
The longer the life insurance available is the cheaper it is.
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What Is Life Insurance?
Life insurance is an agreement where an insurance company agrees to pay a specified quantity of money after the death of the insured party.
Policies guarantee financial assurance in the event of the insured’s death. Life insurance policies cover you over a specified length depending on what time you need protection and what age you are.
Whole Life Policies, a type of permanent life insurance, cover you for life as long as premiums are paid.
Some whole life insurances provide an investment component that allows you to build cash value – taking the premium payments you pay and investing them into the market. Term life usually offers cheaper premiums.
Here Are The 7 Reasons Why Life Insurance is a Must-Have
1. Your job is high-risk
If you work in a dangerous or regulated place of work then you would probably die faster than someone who could sit in a desk for a full.
Jobs in the fields of firefighting, aviation, mining oil and natural gas can often have higher wages. If you leave your job and go without securing alternative insurance, even with employer group life insurance coverage, your coverage will be suspended.
Disability Insurance is the way – Insurance for the salary if you’re incapable of working. A new OECD study shows that many people who cannot work still benefit from disability insurance. It is often beneficial to choose 10 times the annual income of your taxable income to receive your death benefit.
2. Age and Life Insurance
Insurance firms make money by betting on how long people are likely to live. Insurance companies pay more for older people by a percentage of premium if they get a better return.
However, it is usually the case of insurance companies refusing coverage to people whose premium is for the risk. Insurance if needed.
You cannot insure your future life simply because you are worried that you might not qualify for it later. Get insurance when you’re young and don’t wait until your entire life to qualify for insurance.
Insurance is cheaper when you are young but the cost doesn’t mean it’s easier to qualify for a policy, says Simon Tisdall.
Who needs life insurance?
If you are single and don’t have dependents, you’re likely to lack coverage.
It usually doesn’t cover medical care bills but it can help with health expenses. You have insurance when you have debt that exceeds your other assets. Insurance does not always cover everything.
But you can cover some of them under a policy that doesn’t always apply to you if you have the proper care. Insurance can also be used for medical expenses, such as medical bills and others.
Such expenses can be reimbursed by insurance companies.
3. You plan to get married
Specific life insurance products, like joint-life insurance policies, are specifically designed for married couples.
Joint life policies offer beneficial benefits to wealthy couples in an effort to cut inheritance and will tax on the beneficiaries. Discussing the protection of assets and inheritance for children from a previous relationship should be a priority.
If children receiving child benefits are beneficiaries, it is important to establish trusts, as minors cannot directly use these funds. The Trust should also be formed for children who should get insurance through marriage.
4. You’re going to have a baby or you already have children.
The birth of children can be a motive for life insurance coverage. Most Americans have life insurance to pay off their mortgage, student fees, and other expenses.
Your coverage will have the best rate if you are taking a blood transfusion at birth or two months after it’s possible for you to get the right rate at both parties.
If you have been pregnant if you’re the breadwinner of your family this is possible. You could still get some insurance if you were the breadwinner.
You need life insurance if you need to protect someone you rely on to get through their life expectancy and are pregnant.
5. You work for yourself or have a family business
Silvia Tergas of Prudential Financial advises business-owned health plans. If you get a business loan most lenders require life insurance such as reducing term life insurance.
“It would be similar to having life insurance with private student loans,’ said Teargas.
Teargas suggested that business-owned disability insurers identify the business as the business beneficiary for protection of life in the case of death or serious loss of any key member of the business.
6. You have private student loan debt
Life insurance ensures your parents will not leave you with debt when you die.
Students’ federal financial loans may be discharged upon their death. Private loan students become part of your trust debt. When a private lender approves you for a debt discharge or default, the decision rests with them.
The life insurance system aims to prevent any debt from being left behind by an estate, particularly for married individuals or those residing in low-income states.
7. You support aging parents financially
Millennials make up 62 million and counting caretakers for their parents, in-laws, and grandparents.
Life insurance with a long-term care rider can help cover the cost of caring for your parent in an assisted living or nursing facility. Life insurance can help you plan for the health costs of parents.
Find more information about AARP here: CLICK HERE.
Life insurance coverage may depend on your financial goals and needs.
Life insurance, often viewed as a cornerstone of financial planning, is not a one-size-fits-all solution. The extent and type of coverage you need can significantly depend on your individual financial goals and needs. Understanding this alignment is key to making an informed decision about your life insurance policy.
- Providing for Your Family: If you have dependents, your primary goal might be ensuring their financial stability. A life insurance policy can replace your income in the event of your passing, helping your family maintain their lifestyle and meet future financial obligations, like college tuition.
- Debt Management: Life insurance can play a crucial role in debt mitigation. In case of your untimely demise, it can provide the funds necessary to settle outstanding debts, including mortgages, car loans, or credit card bills, preventing these obligations from falling on your loved ones.
- Estate Planning: For those with substantial assets, life insurance can be an essential tool in estate planning. It can provide liquidity to pay estate taxes and other expenses, ensuring that your heirs receive more of your assets.
- Business Continuity: Business owners can leverage life insurance to ensure the continuity of their business. Policies can be structured to fund buy-sell agreements or provide a financial cushion during transitional periods.
- Retirement Planning: Certain types of life insurance policies, such as whole life or universal life, can accumulate cash value over time, offering an additional resource for retirement planning.
- Philanthropic Goals: If charitable giving is important to you, life insurance can be used to ensure a substantial gift to a charity of your choice, creating a lasting legacy.
FAQs
Is it worth having term insurance?
A term insurance policy will be there to help families pay for their debts. A term life insurance plan will enable a family to meet its daily expenses to achieve long-lasting financial goals. It’s a good idea to have a term insurance policy no matter which year.
Which is better term or permanent insurance?
The cash value of the permanent insurance policy grows over the duration. It can use it for paying premiums or for a loan to the insurer. Since permanently issued life insurance policies pay lower rates than term ones and most financial obligations disappear over time, term life insurance tends to be more affordable for most people.
What happens if a person dies without life insurance?
If you never received life insurance your family has to worry about your final expenses. These include taking care of funerals and burials out of your pocket and paying taxes or owing money themselves. A few hundred dollars is not enough to protect themselves or the other members of their family.
What happens if you don’t get life insurance?
Unhealthy insurance can leave your loved ones without access to the money necessary for their everyday living. Without your income or adequate income replacement, your families will struggle to find a place to live for food expenses, bills, or any other expenses.
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Conclusion
If you’re here, the chances are good that you’ve already considered getting life insurance. You might be surprised to find out that there’s still a chance this is true, even if you don’t think it’s necessary for your current situation.
We can help provide some guidance on what type of coverage might work best for your needs and budget by taking just a few minutes to complete our simple questionnaire. Fill out the form below or call us at 1-855-380-3300 today!
