Life insurance can help provide financial security for your family and loved ones. It can also help provide peace of mind as you know that your dependents are taken care of if anything happensto you. Life insurance can be used as an investment tool for retirement, estate, and businesssuccession planning.

Here are just some of the top reasons why and how life insurance can make an impact in your life and the ones you love.

top 10 Reasons to get insurance

1. Cover Burial Expenses

Unfortunately, even the most basic funeral can cost thousands of dollars. And since covid has happened, they have only gone up even more. There are those that pre-pay their funeral, but most people don’t plan that far ahead. And there are risks like the company folding up, going bankrupt, changing owners and not honoring the previous company’s sales, etc. Life insurance provides a guarantee that when you pass it will pay your loved ones, taking that burden of burial costs from your family.

2.Replace Lost Income

Life insurance is the way to provide financial security to your loved ones when you pass away. Have you thought about what would happen if you were to suddenly die? If your family currently relies on your income solely, this would be especially true. Having enough coverage will prevent you leaving your loved ones hopeless when it comes time to pay the monthly bills.

3. Affordable Coverage

A big excuse that a lot of people make when not purchasing life insurance is cost. But honestly, life insurance is usually more affordable than we think, and especially if you work with the right company. The younger and healthier you are, the lower the premiums. So, it is important to get something locked in as early as possible. The costs of death is always a burden or someone, but a small monthly premium is a lot easier and more affordable to come up with now in order to prevent a large burden of thousands of dollars for your loved ones later.

4. Builds Cash Value

There are a couple types of policies, such as Whole Life and IULs that acquire cash value. The premiums that you pay each month collect interest which goes into an account. This is somewhat of a savings account that you can tap into overtime to use for emergencies or something you might desire to purchase. This is an attractive feature to many and could truly make a difference in the right situation.

5. Pay Off Debt

When we die sometimes there are debts left behind. For instance, you and your spouse bought a home together or a car. In the event of your death, this debt would then be laid at your spouse’s feet to handle all on their own. Or it could be that creditors will try to collect from your estate, leaving you heirs with nothing or very little. Life insurance would allow them to pay off those debts leaving the estate intact for the ones you love.

6. Estate Taxes

When someone passes away there are often estate and inheritance taxes on any assets that the heirs may receive. Life insurance can help when it comes time to pay that hefty bill.

7. Diversification Of Assets

Some people will use life insurance as an investment option, such as a universal life policy. You are able to pay extra into this account as you like, called over funding. This allows you to be able to earn dividends based on the products performance. You can set it up to pay out a retirement income or just provide a nice nest egg for the future.

8. College Planning

Did you know life insurance could be a valuable asset towards your child’s education? A lump sum payout could allow your child to wipe out that student loan allowing them to start their career fresh, worry free.

9. Business Planning

If you own a business, it is imperative that you have life insurance. You have responsibilities to the workers, creditors and your family that need to be taken care of so that everything you worked for doesn’t get lost. If you have a partnership, you’ll want to protect each other in case of the unforeseen, thus leaving the potential for your family to be able to either continue on or profit from the hard work you have put in.

10. Peace Of Mind

None of us know when our time on Earth is done, but we all know it’s going to happen. Knowing that you have protected the ones you love the most from a financial tragedy will allow you to breathe a sigh of relief knowing they’re taken care of.