Life insurance isn’t a topic that most people enjoy discussing, but if you have people who depend on you for financial support, then life insurance is really about protecting them in case something happens to you. Life insurance is fundamental to a sound financial plan and there are a number of life events that could trigger the discussion: you’ve just graduated from college, you’ve purchased a new home, you have adopted a child or are getting divorced; all common life events that could be a reason to consider this important purchase. Read on to learn why you should create a lifeline that lasts a lifetime.
Insurance is all about providing you and your family with comprehensive protection for your financial well-being, and life insurance is no different. Many people underestimate the importance of insuring themselves, seeing it as an unnecessary expense, or one that is not yet needed in their life path. However, often times, the simple and inexpensive purchase of life insurance can help to provide the people you love most from financial pains in the event of your passing. If you’re still not convinced that you should have life insurance, here are the top five reasons to purchase life insurance:
It Can Cover Your Personal Expenses and Debt
Today, the average American has a credit card debt of approximately $5,500, and the average funeral costs between $7,000-$10,000. In the event of your passing, your family will be responsible for these expenses, and life insurance will provide financial security to your beneficiary (or beneficiaries) depending on who you designate on your policy. The policy money will allow your loved ones to cover your bills, debt and final expenses, such as a funeral.
It Can Help Your Family
If you are the primary income-generator for your household, you are likely aware of the impact your family would feel if your income suddenly vanished. Do you have enough saved that they would be able to pay off the mortgage, or finance college tuition? If you are like most Americans, the answer to that is no.
Many families often overlook the importance of covering the non-primary income earner in your household as well. If they were no longer there, would you have the ability to pay for childcare, or the additional funds to buy your children new clothes? Life insurance will help to provide your family with financial peace of mind when you are gone, helping to keep them in their home and as much of their normal lives as possible.
It Can Protect Your Business
If you are a business owner and have a partner, there’s likely not a day that goes by without one, or both of you thinking, “They would be lost without me.” While life insurance could never provide your business partner with a sounding board for your difficult problems, or your next great idea, it can help to cover the additional expenses the surviving partner would unquestionably need to keep the business on track in the event of your passing. Talk to your business partner today, and make sure both have life insurance policies in place.
It Can Supplement Your Retirement Savings
You most likely have a 401(K) or a Roth IRA account, but did you know that you can use your life insurance policy to save for retirement as well? With a whole life insurance plan, you’re able to build up cash value over time, which you can tap into at any time when needed. This is a great way to diversify your investments and save for your life after work.
It Is More Affordable the Sooner You Start
In general, life insurance gets more expensive as you age. If you’re in your 30’s and in good health, your life insurance premiums will be lower compared to a person in their late 60’s who has health issues. We recommend getting a life insurance policy sooner rather than later so you can provide your loved ones with more coverage while paying lower premiums.
At Eastern Insurance, our business is protecting you and your family from the financial impacts of life’s unexpected circumstances. Please don’t hesitate to reach out to a member of our team with any questions you may have. Email a member of our customer service team at firstname.lastname@example.org, or call (800) 333-7234 to talk to one of our experienced agents. We also invite you to learn more about the services we provide at www.easterninsurance.com.