It seems like there is an insurance option for everything. To name a few, there’s health insurance, car insurance, flood insurance, mortgage insurance, and even alien abduction insurance… I kid you not. Amongst all the different types of insurance products, life insurance is one of the most important, if not the most important. So, why buy life insurance? You buy life insurance to provide financial security for your loved ones. In the event of your death, your beneficiaries receive a lump sum of money, called a death benefit, to replace your income. This ensures their standard of living goes unchanged regardless of you no longer being around to provide.
No one hopes to die prematurely and leave their family behind, but if the unexpected happens, the purchase of life insurance is one financial decision that can save lives. There are too many sad stories of individuals passing away suddenly with no warning and with no life insurance in place, and their families are left behind struggling to pick up the pieces. Life insurance is not for you, it’s for those you love most.
Rather than just telling you that you need life insurance, let’s go over a few reasons why. Everyone is unique, along with their lifestyles. You may find that only one of these examples fits your life, or that all of them do.
Reason #1 Why You Need Life Insurance – Cost of Death
Funerals are expensive. Depending on where you live and how extravagant you wish your service to be, funerals can cost well over $6000. Can your loved ones easily throw down thousands of dollars without it hurting their finances? The casket, funeral, and burial can be covered by a life insurance policy death benefit payout.
If your death is not sudden or accidental, there may very well be many medical expenses leading up to it. Life insurance can help your loved ones pay for any medical bills that come their way after your passing.
Reason #2 Why You Need Life Insurance – Cost of Housing
The industry standard says approximately 28 percent of your household income goes toward your monthly mortgage payments. If you and your spouse have a combined annual income of $100,000, an estimate of your monthly mortgage payment would be $2333. What would happen if one of you died? Suddenly an annual income of $50,000 would need to cover $2333 each month. Life insurance can cover mortgage payments in the event of a provider’s death. No need to attempt to quickly sell your home and uproot your children in the middle of dealing with the death of a parent.
Reason #3 Why You Need Life Insurance – Cost of Children
Children are a blessing, but an expensive one. The estimated amount need to raise a child to the age of 18 is $245,340. This doesn’t include college. If you are a two-income household, your family’s standard of living is based off having those two incomes. If one income is removed because of the death of a provider, how does this affect your family’s life? If you are raising children on one-income and the primary provider passes away, how will your children be taken care of now? Life insurance is a must-have if you have children. It is a big responsibility to have a family, and it’s up to you to ensure they are protected and cared for even if you are no longer around to do so. Life insurance can replace your income to ensure your family’s lifestyle remains the same and the death benefit can even provide enough funds to cover college tuition.
No one hopes to die prematurely and leave their family behind, but if the unexpected happens, the purchase of life insurance is one financial decision that can save lives.
The previous examples can all be covered by term life insurance. Term life insurance is affordable and customizable. Paying for a funeral, bills, and college tuition are common uses for a life insurance death benefit, but your beneficiaries can use the sum for many things. Funding a 401K, putting a down payment on a home, giving to charity, etc. life insurance is not always just income replacement, you can wish for it to be an inheritance as well.
No matter your needs or wishes, there’s a life insurance product for you. Quotacy will search across the nation’s top insurance carriers to find a plan that fits your needs, time frame, and budget. Start by getting a quote today. You can calculate your needs and window-shop in peace. To see estimated premium costs, we don’t require any contact information. Don’t wait to buy life insurance; you never know what life may bring.
Photo credit to: Eric
About the writer
Marketing Content and Social Media Manager
Natasha is a content manager and editor for Quotacy. She has worked in the life insurance industry since 2010, and making life insurance easier to understand with her writing since 2014. When not at work, you can find her throwing a tennis ball for her pit bull mix, Emmett, or curled up on her couch watching Netflix. If it’s football season, the Packers game will be on. Connect with her on LinkedIn.