5 Reasons Why You Must Have A Life Insurance Policy in 2024
Written by Daniel Ray, Life Insurance Expert |
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Fact Checked by
Lisamarie Monaco |
Editorial Disclosure
If you are in search of a life insurance, here are the 5 reasons why you must have a life insurance policy.
Not having or not having enough life insurance when that unexpected day comes could be financially devastating to your family.
Above all, life is full of surprises, some good and some bad. The fact that life has no certainties doesn’t mean you should just accept this reality, but dying without insurance is something you are going to want to avoid.
Earn the peace of mind by ensuring your loved ones will be financially taken care of if something happens to you. The last question you want a loved one asking is, “who pays for a funeral when a parent dies”?
This article explains why a life insurance policy can provide peace of mind for those who need it most. This way you will never have to ask yourself, “What happens when you die unexpectedly“.
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Why Do Some People Not Buy Insurance
Dying of money is the worst! I get it, you’ve got a life to live. But what about when that all changes one day and suddenly death becomes your only option?
What happens if you have no life insurance?
We aim for peace in our hearts, ensuring that no bills remain unpaid and no children are left without a support system. Unfortunalety, so many people seem content with putting off something so fundamental until they really need its benefits. Then its to late.
I’ve had my share of death-related conversations, and it’s not uncommon for people to avoid talking about their own mortality.
I remember talking to a potential client who lost her husband who was not even 40 years old. They were inconsolable as she told me how many times he said he was going to buy life insurance but never did.
Overall, he never liked dealing with death himself. Unfortunately, she paid a steep price later on when her husband passed away in an accident without any protection.
So why do so many people shy away from buying life insurance? One reason might be that it’s just too expensive. But, in reality, term coverage can actually come at an affordable price for most individuals and families.
In fact, when you take into account how much cheaper term policies are than permanent, it’s a no-brainer! We should all consider securing our future by getting coverage now, rather than waiting until after retirement age (65).
That’s why so few people have the coverage they need. Here are some statistics that should terrify you:
- 60% of Americans had life insurance in 2019, according to LIMRA’s Annual Insurance Barometer Study
- Those with Life Insurance policies 1/5 knew there was not enough!
- Consumers surveyed tend towards overpricing;
- Millennials often believe protection costs five times more than it actually does, leaving them vulnerable when something unexpected or unforeseen happens.
5 Things That Happens When You Don’t Have Life Insurance
Some people might think that they can wait to buy life insurance until it’s too late. Statistics highlight the importance of this purchase for those planning for unexpected future events.
Before you think about a preneed plan read our article here.
Here are 5 things that happens when you die and don’t have life insurance
1) Your Income Dies With You
If you die without life insurance, your family might be left in the lurch. Experts often recommend buying term life coverage worth at least 10x one’s income for wage replacement during grief and recovery.
The Income Replacement Benefit is one of the most compelling reasons for purchasing this type of protection plan- especially if it means taking care of those who depend upon us.
2) Debts Are Left To Loved Ones
After you die, your debts might not seem so bad, but the truth is that your family will have to cover a large bill if left without protection. Life insurance can help with this by providing coverage for major reasons like mortgages on homes and cars as well any credit cards taken out during our lifetime – all at an affordable price!
3) Don’t Leave Your Family With A GoFundMe Option To Pay For Funeral
How much does it cost to die?
GoFundMe is a bummer for the families of those who die. It’s sad when struggles or fundraising for final expenses occur due to lack of funds, a situation preventable with life insurance.
4) Your Legacy Will Not Be Intact
Life insurance is a great way to make sure your family stays safe and independent.
Leaving funds for college or home-staying impacts lives, preventing regret over financial missteps.
With all these benefits that come along with purchasing policies – like peace of mind knowing loved ones won’t ever need charity again. Overall, alleviating financial pressure by providing stability during difficult times such as for retirement.
Above all, giving future generations opportunities we might otherwise miss out on due to a premature death. I strongly encourage everyone reading this post today to do themselves a favor and GET COVERED!
5) Owning A Business With Partners
Above all, owning a business with partners can get a little sticky if one of them dies. Imagine a next of kin influencing daily business operations without any experience.
A buy/sell life insurance policy guarantees the deceased’s share is bought out, giving their family the full death benefit.
The Truth About Buying Life Insurance Now
You are probably on the verge of buying life insurance, so don’t let another day go by without coverage. You may not think something could happen in your lifetime but it doesn’t always work out as planned. Remember, 8000 people a day die in this country.
If you’re unlucky and death occurs, those who love and depend on you will end up bearing the burden. That’s why spending just 30 minutes to get a financial estimate can help them continue to provide financially once all expenses are settled!
FAQs
Life insurance provides financial protection to your beneficiaries in the event of your death. It can help cover living expenses, debts, and funeral costs, ensuring your family’s financial security.
Life insurance pays out a death benefit to your dependents, which can be used to cover daily living expenses, education costs, or any outstanding debts, ensuring they are financially secure after your passing.
Yes, the death benefit from a life insurance policy can be used to cover funeral and other final expenses, relieving your family of these financial burdens.
Even without dependents, life insurance can be beneficial. It can help manage debts, leave a legacy, or provide financial support to aging parents or a charitable cause.
The payout from a life insurance policy can be used to settle outstanding debts like mortgages, car loans, or credit card bills, preventing these obligations from being a burden to your family.
For term life insurance, the policy simply expires. Whole life policies, however, may accumulate a cash value over time, which you can access under certain conditions.
Yes, life insurance can be a vital part of estate planning. It provides liquidity to your estate, helps pay estate taxes, and ensures that your assets are distributed according to your wishes.
The choice between term life and whole life insurance depends on your financial goals, your dependents’ needs, and your budget.
The amount of coverage depends on your financial obligations, income, lifestyle, and the number of dependents you have. A common recommendation is to have coverage that’s 5-10 times your annual income.
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Conclusion
With all of the risks in life, it’s always a good idea to have some form of protection. There are four major reasons why everyone should consider purchasing and maintaining at least one type of life insurance policy throughout their lifetime.
- Life Insurance is inexpensive
- It provides peace-of-mind knowing you will be taken care for if something unexpected happens
- You can customize your coverage depending on your needs and circumstances; and lastly
- The proceeds from a life insurance policy provide financial stability for both you and those who depend on you.
If any these points resonate with you or someone close to you, we invite you to fill out the form to the right and get a quote today!
