Some people believe that life insurance isn’t a worthwhile investment. They might be under the impression that it’s not worth the monthly fee for something that they may not need. But that’s not true. There are multiple uses for a life insurance policy that can significantly help ease your financial burdens.
It’s not as expensive as you think
Many people think that life insurance is a big expense that they won’t be able to afford. But they are wrong. Life insurance isn’t as expensive as many people think. A recent study from LIMRA and Life Happens, a nonprofit insurance education group, found that 80 percent of consumers have the wrong idea about the price of life insurance. Life insurance actually happens to be lower than other forms of insurance and, moreover, are usually less expensive than monthly cable and cellphone bills. However, it is important to keep in mind that prices to vary depending on your age, gender and health.
For your family
Life insurance isn’t really for you, it’s more for your family. If you are the one providing for your family, especially if you have kids who aren’t old enough to work, then getting life insurance isn’t even a question. Your children still need food, clothing and shelter if you unexpectedly pass away and they don’t have anyone’s income to live off of anymore. Moreover, ensuring that your home is covered under your life insurance is crucial to make sure that there is enough money for your family to pay off the mortgage.
A life insurance policy will act as a substitute income that you bring to your family in the chance that you unexpectedly pass away. The expenses that your family needs to pay for don’t just disappear if you pass away, they will still need to pay for them and may have no steady income to do so.
Help during retirement
For many, they can’t save up enough money to live comfortably after their retirement for the rest of their life. That’s where life insurance comes in. A life insurance policy can help fill in the gaps that your income used to support when you retire.
Changes in your life
If a significant life event happens then you might find yourself with more expenses. A new baby, marriage, buying a home, a new job, or college are all things that require you to change your budget significantly. Having life insurance can help cover these costs.