If you have been thinking about buying life insurance, but for whatever reason, have delayed your decision, you may want to read the following 10 important reasons to buy life insurance. Regardless of your situation, at least one reason will apply to you.

Funeral Costs

Let’s face it; we are all going to die one day. Nobody knows when. The cost of a funeral today is thousands of dollars and likely will rise in the future. Don’t leave that financial burden to your spouse or parents. Life insurance funds in place can cover the cost of your funeral.

Are you a Homeowner?

As a married homeowner with a mortgage, advance planning will ensure that in the case of your premature death, the mortgage is paid off, and there is enough money remaining for your surviving spouse. If you are single, and own a home with a mortgage, you certainly would not want your heirs to assume the burden of your debt. Having life insurance in place to pay the amount of your mortgage at the time of your death is really important.

Outstanding Debts

The reality is that in today’s world, it is tough to get ahead. Regardless of any outstanding mortgage balance, you may also have lines of credit, car payments or credit card balances that must be paid off by your estate or spouse. Adequate life insurance can be put in place to take care of debts upon your death.

Do you have Children?

You have a responsibility to provide for your kids. Make sure there is money left for your spouse, the primary caregiver, to provide for your children in the same way as when you were alive. You may also want to ensure there are funds available for their future education, particularly if they are still very young.

Lifestyle

If you are married, and/or have children, I am sure you would want your spouse and kids to maintain or improve the lifestyle you gave them. It would be an added burden, and major adjustment at a difficult time, to have to sell their home, move, and downsize in order to maintain the lifestyle you provided. If you do not have adequate insurance in place, downsizing may be the only way they will manage to have enough funds.

Replace Lost Income

How much income do you earn? How much do you expect to earn over the course of your working life? If you died prematurely, how many years of income would you like to leave to your family so they would have time to readjust? Proper planning with a life insurance policy can take care of this for your family.

Security

Let’s face it, we all like security and peace of mind. Just to know that if the unforeseen did happen, the fact you had life insurance in force on the adult caregivers and providers, should give security to you, and definitely to your spouse.

Estate Planning

Whether you are a multimillionaire, or middle class, your assets will be redistributed at death. Regardless of your situation, make sure there are enough funds to help ease the transition. You pay enough taxes throughout your life. At death, your estate may attract taxes, probate and legal costs. Life insurance is an opportunity to leave tax free money to your beneficiary to deal with any estate settlement costs.

Are You Still Insurable?

The time to purchase life insurance is while you are still young and in relatively good health. It is a fact that as we grow older, whether we like it or not, we are more likely to develop health challenges. Don’t risk delaying purchasing life insurance only to learn you are perhaps in a higher class risk and insurance is more expensive. Worse yet, you may not be insurable. Guaranteed to issue policies are available, but there are limitations and they are very expensive. Don’t put it off!

If Not For Your Family, For Your Parents

Parents do a lot for their kids. You do, and likely your parents did for you. Wouldn’t it be nice to be able to give back? As baby boomer parents go into retirement and beyond, they may require some financial assistance. Many in this age group find the pension plans they counted on, fall far short of their needs. Perhaps you can foresee your parents will require care and you are prepared to help them, maybe even have them live with you. This is a great plan, but if you die prematurely before your parents, who will be there to help them out? An insurance policy naming them as beneficiaries would be the answer.

I hope this article has given you a bit of insight about how insurance can financially help you with some of the unexpected events in life. I have always said, buying life insurance is an unselfish decision. It is the purchase of which you personally will never reap the benefit but your family and loved ones will. But then, the knowledge you’ve provided adequately for them, really is a benefit to you!

For more information, feel free to visit our website.

Jordan Kovats B.Sc.

The Benefit Guys

Jordan has been involved in the Insurance industry for over 10 years. He specialized in Disability Insurance, until he went on to be a Co-Founder of The Benefit Guys.

http://www.thebenefitguys.ca

Article Source:

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If I have already bought a term life insurance plan for 20 years a year ago, and I get a new job which is a higher risk job, will my insurance rate go up? If so how much could it go up by?

Mike

Amarillo, TX.

Great Question.

When you buy a life insurance policy, your beneficiaries can use the money to cover the bills you leave behind. Believe it or not, the costs associated with your funeral and burial will likely reach many thousands.

In addition, there may be costs involved in settling your estate. You may have medical bills that your health insurance did not cover or other types of debt. When your loved ones are grieving, they don’t need the additional burden of worrying that these expenses may potentially spell financial ruin.

Here’s another reason to consider. When you buy a life insurance policy it can be used as a way of leaving something of value to your heirs. All you have to do is name as beneficiaries the individuals you choose to inherit your policy.

Or, instead of naming individuals as beneficiaries of your life insurance policy, you could choose a charity as the beneficiary.

Given the above reasons, buying a life insurance policy just might make sense after all!

Good life insurance policy can be passed on to your heirs if you name them your beneficiaries. Therefore, if you do not have any other funds to leave behind, you can still leave your heirs the money that your life insurance will provide.