Updated: Aug 21, 2021
No one likes talking about life insurance. In fact, most of us go out of our way to avoid the topic. That's why this article is so relevant.
Life insurance is a real thing and is necessary for most of us unless you're extremely wealthy. For the other 95% of us, it is a necessary expense, and here are the five reasons why you need it:
1. Income Protection
If your family depends on your income to help with monthly bills, what do you think they would do if you were to pass on? How would they cope with everyday living expenses minus your income? Would your home be at risk? Would your family be able to survive? These are the tough questions you have to ask yourself, and if the answer is not good, you need life insurance.
2. Burial Expenses
So not only have you passed on, but you've left your family with the burden of having to plan your funeral. The only problem is there is no money to do so. Funeral planning in itself is not an enjoyable task. It's hard, and it takes great mental strength to get through it. And the process becomes even more stressful when the family is trying to figure out how they will pay for it. Save your family the burden of the extra stress by, at least, leaving a policy to pay for funeral expenses.
So you've passed on. But just because you are no longer living, does not mean that your debt disappears. In the event of your death, who would assume the responsibility for your debt? If you own a home, a business, or have personal liabilities, someone else will become responsible for those liabilities (possibly your next of kin). Leave your next of kin with the means to be able to support your debts.
If you have children, you definitely need a life insurance policy. If you have small kids and no life insurance, you may be putting your entire family at risk. Not only are they trying to cover your burial expenses and pay off your debt, but they will most likely have to take care of your children. Need I say more?
If for no other reason, give your family a leg up in life. A good life insurance policy could provide your family that would otherwise be broke and reeling from the financial complexities of your loss, with the financial capacity they need to pay off a mortgage, purchase land or a business, go to school, or whatever. It could make the difference in your family living a life of poverty or a life of prosperity.
No amount of money could ever replace the loss of a loved one. But life insurance can help protect during the uncertainties in life. That's why it exists. Nothing can replace the peace of mind life insurance can bring. Life insurance is not about you. It's about the ones you leave behind.