Life insurance may seem like a luxury that you cannot or do not need to afford. However, regardless of your age or living situation, life insurance can be useful for you and your loved ones.
Who Needs Life Insurance?
Life insurance is not just for “older” people. Life insurance is useful for anyone who has loved ones that they want to continue to take care of after death
Life insurance has a different purpose for everyone. But whether you have five young children, are a primary caregiver to a loved one, are young and single with no dependents, or are elderly with grandchildren, life insurance will be useful for you.
When Is Life Insurance Useful?
When you have dependents, having a life insurance policy will help them to be taken care of after you pass away. If you are a major source of income for your family, they will need to find a way to make up for your lost salary. Ideally, a parent will have a way to make up eight to ten years of their income, which a life insurance policy can help to do.
Without the help from your policy your family would have to significantly decrease their standard of living. Additionally, your spouse or significant other may have a more difficult time putting your children through college and paying for other necessary expenses.
Funeral expenses can rapidly add up to thousands of dollars. Most families are not prepared to spend their savings on a funeral.
Life insurance policies can help cover most of these costs.
Even if you are single or do not have dependents, a life insurance policy can be useful to you. If you have any student loans, debts, or medical bills, these will be left to your spouse or family after you die. Your life insurance policy can help pay them off.
If you are free from debt and don’t have any dependents, you can set up your life insurance policy to leave a significant donation to the charity of your choice.
A good life insurance policy is particularly important if you are older and plan to leave your estate to your posterity. Often there is an accompanying estate tax which can be up to 40% of the cost of the estate. This could easily add up to tens of thousands of dollars in taxes. With a good life insurance policy though, the tax can be covered without your descendants having to worry much about it.
Whatever stage of life you’re in, life insurance is a necessary investment if you want to avoid leaving behind any debts or expenses for your loved ones to have to take care of. Call us today to get a quote on your own whole or term life insurance.