Why Do We Need Life Insurance?
Over 7,009 Americans die each day. Death is, unfortunately, a reality that we all must face eventually.
With our daily activities and responsibilities, many American tend not to think about their mortality. Truth is, though, that at some point we are going to pass away.
Why do we need life insurance? Here are the top reasons that show why life insurance for your family is important.
Why Do We Need Life Insurance?
In the event of an untimely death, life insurance provides financial security for your loved ones.
It can help cover expenses like mortgage payments, child care, and other bills. Life insurance can also be used to help pay for final expenses, like funeral costs and outstanding debts.
For these reasons, life insurance is an important part of financial planning.
Benefits of Life Insurance
There are a number of reasons why you might need life insurance.
It can provide financial protection for your loved ones in the event of your death, help pay for funeral and estate expenses, and allow your family to maintain their current lifestyle. If you have young children, a life insurance policy can also help pay for their education.
In addition, life insurance can be used as a source of income during retirement.
The Different Types of Life Insurance
There are two main types of life insurance: term life insurance and whole life insurance.
Whole life insurance covers you for your entire life, while term life insurance only covers you for a set period of time, such as 10 or 20 years.
Whole life insurance is more expensive than term life insurance, but it provides more security for your family in the event of your death.
Choose the Right Plan
It’s important to know the difference between term life insurance and whole life insurance so you can choose the right life insurance for you.
Term life insurance is the most affordable option, but it only covers you for a set period of time. Whole life insurance is more expensive, but it covers you for your entire life. Universal life insurance is a type of whole life insurance, but it has more flexibility in terms of premiums and death benefits.
Choose the right life insurance for you based on your needs and budget.
Insurance Riders
An insurance rider is an additional feature that can be added to an insurance policy to customize coverage.
Riders typically add cost to a policy, but they can also add valuable protection. Common insurance riders include features such as inflation protection and Long-Term Care insurance.
An example of an insurance rider is called “paid-up additions” commonly known as PUA. If you apply for PUA, an additional premium is paid in the early years of your insurance policy. It might be expensive at first but will grant you greater returns in the future.
Riders are just one way to customize your insurance coverage. You should always talk to your insurance agent or company to see if a rider is right for you.
Protect Your Future
Now you know why do we need life insurance. It’s an important part of financial planning for yourself and your family. It can help you protect your loved ones financially if you die prematurely. It can also help you pay for final expenses and leave a legacy.
Talk to a financial planner to get life insurance advice and how it can benefit you and your family.
And once you realize the value of getting life insurance for yourself, we know you’ll begin to explore. Browse our website for more life insurance tips
