How Important is Life Insurance
Ask any financial advisor about the importance of life insurance and you’re likely to get the same answer from all of them – it’s more than important and should really be mandatory. We live in an unpredictable world and there’s really no guarantee we’ll be here from one day to the next. Should you pass away unexpectedly, a death benefit is the only way to know your family has the financial security to move forward without you. Even wealthy families should have some form of protection if they want to maintain their lifestyle. If you’re still on the ledge about taking out a policy, read about these important reasons for coverage and you may just be compelled to take the plunge.
Reasons You Need Coverage
- The number one reason to invest in protection is to replace your family’s lost income should anything happen to you. Most advisors recommend that your plan is able to replace about 10 years of lost income in order to provide a financially stable future for your family.
- Do you have any debt or part of a mortgage to pay off? From loans to credit cards, just about everyone has some form of debt these days. Unfortunately, it usually falls upon your family to get it paid off and it can be a difficult burden without the financial support of a death benefit.
- Would you like your children to attend college someday? Most parents would, but the price of a college education is more costly than ever, even with the help of grants and scholarships. With a plan, you can create a fund for your child’s college tuition.
- While most people know how important it is to replace lost income, you may also need to replace lost labor as well. Should you pass away prematurely, there are probably a lot of tasks you cannot reasonably expect your spouse to take care of while working and caring for the family in your absence. Many people need a nanny or some form of help in order to keep up with cooking, cleaning, home repairs, or chauffeuring around the children.
- Lastly, one of the main reasons why everyone should have at least a small plan is to cover any final expenses. Funeral services, medical bills, and other expenses can easily cost over $10,000 and you don’t want to leave your family with that kind of financial burden.