Life insurance, like any other insurance policy, is simply a promise to do something in the event of another something or happening. Usually the promise is for some sort of benefit (Money) in the event of a specific happening (usually death). Because life insurance as a product is not a tangible thing, it is very difficult to convince many individuals of the importance of a life policy. Many people ask themselves, why should I purchase life insurance? Essentially, what is in it for me?
Some years ago I may have been on the side of individuals who did not see the real benefit of a life insurance policy, but after getting married, and having a beautiful son, you might say that I have seen the light. I now realize that life insurance is a fundamental product for a proper individual or business financial plan. Life insurance provides the peace of mind of knowing that money will be available to take care of the people I love when I die.
6 simple rules reasons to buy Life Insurance:
To pay off debt – Life insurance can provide income for everyday living expenses in the event of loss of a primary breadwinner, but what most people do not know is that it can also cover other debts so that the family does not have to sell their house just to cover those debts.
To pay off estate taxes – Estate taxes can be very expensive and getting the right life insurance product can help preserve your assets for your beneficiaries.
To buy a business partners shares – Anyone who is involved in a business partnership should have life insurance on their business partner’s life. This is crucial. With life insurance, an individual can buy out the interest of the business partner from his/her heirs, as well as pay for his/her business partner’s share of the company financial obligations without having to sell the company in full or in part. Both business partners should have insurance on each other’s lives.
To replace a spouse’s income – Nowadays most families require two incomes to have a comfortable life. If one spouse passes away, a proper life insurance product is needed to replace that income which is essential to the family’s lifestyle.
To cover children’s expenses – Like many parents out there, I want to make sure that my child is well taken care of if something happens to me. I also want my child to have a quality university or college education. A good life policy can provide the peace of mind of knowing that your child or children are taken care of in the event of death.
To pay for final expenses – The cost of a proper burial and funeral can cost in the tens of thousands. A good life insurance policy can prevent your spouse, parents or children from suffering financially in addition to emotionally in the event of your death.
So what’s the final say?
You may be one of those people who currently does not see the benefits of life insurance, but my hope is that after reading this article you have come to the realization that life insurance is a product that an individual purchases for the love and care that he or she has for their family. It could be today, tomorrow, or 65 years into the future, but death will happen eventually. [intlink id=”165″ type=”post”]Life insurance[/intlink] protects your family; your wife, children, parents from the inevitable and helps them through an otherwise difficult time of loss.