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Why get life insurance
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In this article, I’m going to go over the reasons behind getting life insurance, but will not get into specific types; I’m saving that for upcoming articles deliberately to not steal the shine away from the underlying reason for purchasing it.
Life insurance is primarily purchased to provide those you care about financial protection, should you pass away. Some use it to cover estate taxes or business dealings, but in this particular article, I will focus on ordinary family needs.
It’s common for people to search online for sites that can tell them how much life insurance they need. I can tell you from experience that there is no such rule of thumb (such as replacement of 10 times income) that can fit to your needs and wants. Ask yourself, if you didn’t wake up this morning, would you want your family to continue living in the same house? What is the remaining mortgage on it? Would you like to have money set aside to make sure your kids can attend the University of their choosing? Would you like to replace some of your income? Would you like to cover your burial expense, which could cost around $10,000?
Be honest with yourself when answering these questions, it will help you reach an insurance amount you are comfortable with, and nobody will, or should, judge you for it.
Who is a candidate for life insurance? Anyone who wants to sleep better at night knowing their loved ones won’t suffer financial hardship while grieving the loss of someone they cared about. It makes a bad situation more manageable, and that is the best we can do, since we can’t change reality.
You don’t have to currently have dependants in order to justify owning a life insurance policy. It is, the vast majority of the time, less costly when you get it when you are young, and the premium goes up every year that you put it off, therefore you can lock in low rates while you are young and pay the same locked in premium even as you get older.
