When you die will someone suffer financially? Then you probably need life insurance because it will provide your family with cash after your death. Upon your death your family will receive a death benefit, which replaces your income and can help your family meet their financial needs, from funeral costs to daily living expenses to college funding.
If you’re married
Many people are under the impression that you don’t need life insurance until you have kids. But this simply isn’t true. If your spouse passes away tomorrow would you have enough money from just your income alone to pay off credit card balances and car loans? Or to just pay for monthly rent, utility bills and food costs? It’s important to get life insurance as a precaution. Additionally, if you are planning on starting a family most life insurance companies won’t insure pregnant women so it’s important to get your policy ahead of time.
If you have kids
The majority of families wouldn’t be able to survive without two incomes coming in to make ends meet. If your spouse died suddenly would just your income be enough to support you and your kids? Would you be able to buy your kids food and put a roof over their head? Would your kids still have a college fund? These are all important things to think about and major reasons to get life insurance.
If you’re a single parent
As a single parent you are the only lifeline for your children. You put a roof over their head, you cook, clean, drive them around, and do so much more. If you don’t have life insurance and something happens to you what is to become of your children’s financial future?
If you’re retired
When you pass away your heirs could be hit with an estate-tax payment of up to 45% after you die, depending on the size of your estate. The money from a life insurance policy is available immediately, allowing your heirs to pay off the taxes and take care of other things like funeral costs and other debts without having to worry about their own finances.
If you’re a small business owner
Did you know that life insurance can take care of your small business and not just your family? What would happen to your business if you, a fellow owner or a key employee suddenly passed away tomorrow? Would the business just come crumbling down? That’s where life insurance comes in. You can opt to get a policy that is structured to help your business in the case of your death. A buy-sell agreement ensure that the remaining business owners have the money to buy the company interests of a deceased owner at a previously agreed upon price. This allows the owners to get the business and your family to get the money. In order to protect your business against losing a key person opt for key person insurance, which is payable to the company and provides the owners with the financial flexibility needed to either hire a replacement or work out an alternate arrangement.
If you’re single
Most single people don’t need life insurance because no one depends upon them. But there are some exceptions to this. If you are taking financial care of an aging parent or a sibling with special needs then your life insurance plan can go to help cover those costs. Additionally, if you are in any type of debt it’s important to get life insurance so that your debt isn’t passed down to surviving family members upon your passing.
Everyone should have life insurance. You never know what will happen and it will only be beneficial. Think about getting a life insurance plan when you’re young because you will get the best rates when you’re young and healthy.