Many people have the misconception that they do not require life insurance. But for several, this is not the case. A simple life insurance policy can turn out to be an excellent instrument for securing the financial future of your children, spouse or any other dependents if you were to pass away unexpectedly.
Term life insurance is a great example. It is generally inexpensive and the premiums are low, and they get lower the earlier in life you purchase it. Term life insurance provides coverage to the policyholder for a predetermined time period, for example when you have young children or large debts. Permanent life insurance generally has more expensive premiums but it remains active for your entire lifetime and can be used as a tool to build cash value as well.
Unfortunately, most people refrain from purchasing life insurance simply because of our death and its effect on those close to us. Indeed, it can be a very difficult and uncomfortable thing to think and talk about. That being said, that does not make it any less vital for securing your financial future.
1. You never get any younger — and life insurance doesn’t get any cheaper
Time only moves forward. Meaning we are currently as young as we are ever going to be. Increasing age is often accompanied by health issues. That is one of the main reasons why life insurance premiums get more expensive as you grow older. Life insurance costs increase with each passing year for any individual. It also increases the cost of premiums as well.
Waiting for the ideal time to get coverage only leaves you and your loved ones unprotected for longer and ultimately ends up costing you more. Getting it early in life or as early as you can is the smarter option.
2. It might seem like an option for you, but your family could be left in a vulnerable situation without it.
A term life insurance policy will not benefit you directly. As you will not be there to make use of the money provided by the policy. But for your spouse, children and other family members that would receive the death benefit, the funds can be a determining factor between maintaining their current lifestyle or descending into financial ruin.
Any debt such as a private student loan or even a mortgage can leave your family with the responsibility to pay them off but no funds to pay them with. Not only will they have to maintain their lifestyle without your income, but they would also have to incur these extra payments. While leaving them your savings is a good option, you may not be at the stage of life where your savings are sufficient enough to help them. This is where life insurance becomes crucial
Either a term or permanent life insurance policy can help to alleviate that burden from your family. It can also help to cover any inherited debts and allow them to continue living the life you wanted for them.
3. The need for the insurance coverage might arise when you least expect it and by then it might be too late.
Nobody knows for certain what the future holds. If life insurance is required, it is not something you pursue retroactively. The bitter truth is that unexpected or unforeseen events can happen at any time. As a result, it is good to be prepared for it.
Fortunately, that is exactly what life insurance is intended for, protection against the unknown. The quicker you purchase it, the quicker you can rest easy knowing that your family’s financial future is secured. It is not just about having that peace of mind though, the benefits provided by life insurance policies can be a massive factor in maintaining financial security and stability for the family if you are absent.