Why Get a Life Insurance Before Everything Else
People readily want to buy insurance for their car, house, and land in the hopes of protecting these assets. However, very few of them realize that their biggest asset is not any of these things—it’s their lives. Who will pay for the mortgage and take care of your family when you meet an accident? Who will run the car and pay for all the bills? These are grave questions and many prefer to avoid them rather than face them head on.
Life insurance is made so that you can keep guard of yourself, too. Your life is important, especially when there are other people who depend on you. It’s not enough that you have health insurance or you stay cautious. Accidents happen all the time and you have to think of this possibility happening to you.
Not convinced yet? Here are the top reasons why you should get a life insurance now!
- To Cover Your Dependent’s Expenses
If you’re the bread winner in the family, it’s your responsibility to ensure that every member is taken care of. In other words, you should keep everyone well fed, send the children to school, and give them clothes and a house to live in. There is a life insurance coverage that can cater to an educational or housing plan. However, even those which do not will still allow you to cash money in so that you can leave something behind for your family.
- To Pay the Debts
There are those who leave behind debts instead of a valuable inheritance. As a result, the family not only struggles to find a way to pay their day-to-day expenses, they also have to settle the debts. It’s not financially healthy for anyone to do this. If you want your family to still be able to live comfortably, you have to completely pay them off. There are life insurances that cover debts, like the mortgage.
- To Replace Your Spouse’s Income
If you are sharing family responsibilities with a spouse, then things might be easier for you. However, what do you think will happen when one of you passes away? The other one would need to work twice as hard to replace his or her income and still cope with the same lifestyle. Tasks like cleaning the house, cooking, doing the laundry, visiting the doctor, and helping kids with schoolwork also fall under only one person’s shoulders. What usually happens is that the expenses get bigger and the income becomes smaller—a problem that life insurance can easily aid.
- To Pay for the Final Expenses
The cost for the funeral and burial can range from tens to thousands of dollars. The common practice is to let those who are left behind take care of these expenses. However, if you really care for your family, you will not leave behind such burden. Not only will you let them suffer emotionally because of your death, you will also give them financial trouble.
- To Pay Off Your Estate Taxes
Estate tax is the tax that lawful heirs or beneficiaries have to pay so that the deceased person can transfer his or her estate at the time of death. This tax can be steep and those who can’t afford to pay it end up losing all the hard-earned assets. To avoid jeopardizing the things you’ve worked hard for, you can get life insurance coverage that will allow you to pay for the estate tax even after you’re gone.
Brian Frederick, part of the Intrinsic Wealth Counsel, once said that most of those who are in their twenties feel that there’s no need for life insurance mainly because they feel invincible. However, when they reach their 50s, coverage becomes more expensive and harder to get. That’s why it’s better to get life insurance now than regret it later on.