Why Do I Need Life Insurance?

The Benefits of Life Insurance

Life insurance is one of the few things we can buy in our lifetime that’s exclusively for the benefit of the people we love most. If you pass away, life insurance can help to provide much needed financial support to your loved ones, who might otherwise have to shoulder the cost of your funeral, medical expenses, or even debt.

Of course, we don’t enjoy thinking about our own mortality. But, as Benjamin Franklin once said, “In this world, nothing can be said to be certain, except death and taxes.”

If you passed away tomorrow, wouldn’t you want to know you left your family in the best financial situation possible?

5 Reasons Why People Put Off Buying Life Insurance

1. I Don’t Need Life Insurance

Ask yourself: If I passed away tomorrow, would my family be able to sustain the same life style they currently have?

Nearly half of respondents said they would feel a financial impact from the loss of their primary breadwinner in just six months. More than one-third would feel the strain in one month or less, according to the 2018 Insurance Barometer Study by LIMRA.

It’s not just for those with children either. The benefit amount from a life insurance policy (how much money your policy is worth) could help a significant other maintain the lifestyle you led together, or help aging parents afford the care they need.

2. I Don’t Get Anything Tangible From My Purchase

Unlike other things you might buy, you don’t obtain life insurance for your own benefit. You buy life insurance in the hopes of leaving your loved ones in a better place financially than they might have been otherwise. Look at it as an investment into your family’s financial future, and your own peace of mind.

What if my term insurance ends before I need it? You can always renew it or consider a more permanent whole life policy. There are even policies that can benefit you during your lifetime, such as term life with “living benefits.” These benefits are available to those with qualifying chronic, critical or terminal illnesses and can help cover much needed expenses, such as your medical bills.

3. I Already Have Life Insurance Through Work

Most times, employers provide a base amount of coverage, such as a year’s salary, to their employees at no cost. However, that amount alone may not be enough to cover your families’ immediate or long-term needs, in the event of your passing.

To add to that, if you left that job for any reason, you may not be able to transfer that life insurance policy. Since your rate is largely based upon your age and health at the time of application, you could be paying more the longer you wait to buy.

Consider utilizing the free amount of coverage provided by your employer, and then buying an additional individual life insurance policy that isn’t tied to your job.

4. I Have Other Financial Priorities

You have a set income and a number of financial priorities that require a piece of the pie. Most people can relate. In fact, roughly 36 percent of respondents cited other financial priorities as the reason they haven’t shopped for life insurance, according to LIMRA’s 2017 Individual Life Insurance Consumer Survey.

Fortunately, there are simple ways to make room in almost any budget for life insurance. For example, consider reviewing your media and streaming services and cutting back on the ones that you no longer use. Some term policies can be as inexpensive as a subscription to Netflix each month! This brings me to my final point.

5. Life Insurance is Too Expensive

Some people are putting off buying life insurance because they believe it costs too much. However, when asked to estimate the cost of a $500,000 term life policy for a healthy 30-year-old, almost half (44%) of millennials overestimated the cost by five times as much as it actually costs. In reality, there are affordable life insurance options for almost any budget, such as a term life policy.

You might be asking yourself, what is term insurance? Term life insurance allows you to decide how long you need coverage for and how much coverage you actually need. You can even choose one-year increments. This means that if you have a mortgage on your house and you’re 13 years away from the day it will be paid off, you can buy a 13 year term policy that will ensure your home will be paid for, even in your passing.

That flexibility allows you to pay for the coverage you need, and nothing more.

Life insurance can only be utilized if you buy it before you need it. Take the first step toward getting the coverage you need by calling 817-866-3337.