So, why should you buy Life Insurance? There is a myriad of reasons for you to buy Life Insurance. This list can range from changes in your health to just planning for your future retirement. However, the reasons not to buy Life Insurance can be counted on one hand and using no fingers.
In today’s society, the word “Death” is seldom discussed or spoken. The vast majority of people seem to think that if you do not talk about it, it will just go away.
To be honest, most people only think of insurance under two conditions, when they need it or when they need it and do not have it.
In addition, even the most prudent planner is generally sold insurance rather than they themselves shopping for it.
The Grim Reality.
I know that in today’s economy, it can be stressful having to make every dollar count.
The fact is, insurance is often times, not seen as a need. Especially, when you are forced to choose between feeding your children and paying an insurance premium.
The grim reality is, life is not fair and we need to start to view life insurance as a must.
The Need Is Real.
It’s too common to view life insurance a minor inconvenience, rather than what it truly is, a lifeline.
Another misconception about life Insurance is that people often time believe that their policy is for them.
In actuality, Life Insurance is for your survivors. Therefore, when deciding the type and amount, you should consider your survivor’s foreseeable needs.
Reasons Why You Should Buy Life Insurance.
I was fortunate to have parents and grandparents that saw the importance of teaching me the value of planning at an early age.
The older I got, the more I could see the wisdom in their teachings. Although no one can truly plan for life, you can plan for death.
That was the lesson I learned the hard way.
Reason One: Final Expenses.
This first reason is probably the most obvious of all the reasons. Especially, since the average funeral costs $7,181. That $7,181 includes a viewing and burial, embalming, hearse, transfer of remains, service fee and more.
According to Mario D. Hearns, a licensed Funeral Director at Gregg L. Mason Funeral Home of Miami, Florida, this cost is between “$7,000 and $8,000 in Florida.”
However, according to Mr. Hearns, “this does not include the actual burial plot, which can add another $8,000 to your expenses.”
Reason Two: Survivor’s (Children or Dependants) Expenses.
This next reason applies to almost everyone as well. Especially, if you have children under the age of eighteen or others who depend on you for their survival.
You take care of yourself. As much as we would like to think it does, that does not guarantee the future. The need for insurance cannot be stressed enough.
The proper policy can mean the difference between your children being homeless and being able to continue on with their daily lives. The loss alone will be almost unbearable. An insurance policy will prevent your loved ones from having to worry about where they will stay and where their next meal will come from.
Reason Three: Replacing A Lost Wage.
I know from personal experience that talking about money at a time like this, is the last thing on your mind.
However, they are only your friendly utility company or car dealership as long as you can afford to pay them on time.
The loss of a spouse also means the loss of the income they were contributing to the family. I know it is harsh, but thinking about this now is much easier than after your loved one has passed away.
Reason Four: Outstanding Debt.
Again, you will see how friendly any of your creditors aren’t once they realize you are unable to pay.
Not to mention that whatever outstanding debt your spouse had, will now fall to you.
This could be your car or even your home, but an insurance policy can alleviate this burden in your time of extreme need. If by chance your spouse or loved one had an extended illness prior to death, an insurance policy could be your saving grace.
Reason Five: Estate Taxes.
Whether your estate is liable for federal estate taxes depends on the value of your gross estate, the amount of debt you owe at the time of your death, the total expenses incurred while settling your estate, and any deductions that your estate is eligible to take.
Whatever the Estate taxes amount to, a life insurance policy would be a much-needed lifeline that could save your home or property.
It is thoroughly documented that these taxes can be excessive and not having insurance could ultimately mean relinquishing assets that you can ill afford to lose.
Reason Six: Help Save Your Investments.
There are various scenarios in which you could find yourself needing to liquidate your investment assets or forfeit control of a business.
If you are in a business that has partners, their death could mean you could lose controlling interest in the very company you helped to create.
Even worse, you could lose the company altogether. This is another extremely important reason why life insurance is so vital. A policy could provide you with the necessary capital to buy out your deceased partner’s share of the company and in turn, this would protect your investment.