The fact that you are reading this article suggests that you are interested or at least familiar with what life insurance is. While you may have heard a pitch from someone you know, maybe a friend or co-worker, you still aren’t totally sold with the idea of buying one. Well, it’s hard to blame you since getting life insurance means spending money. Nevertheless, there are certain arguments for it that may eventually convince you.
1 – Life insurance is primarily about paying for the expenses upon your death.
One of the most practical reasons to get life insurance is that you want to be financially able to cover for your own funeral and burial when you die, thereby relieving your family from suffering a financial burden while also mourning your death.
2 – You can get a policy that extends its coverage of your children’s expenses.
As a parent, you should know how important your kids’ welfare is and you want to ensure their expenses are covered. You should know that there is an option to get additional coverage intended to cover the expenses of your kids while they still live with you.
3 – There are certain provisions in life insurance that serve to replace your spouse’s income.
As much as you hate to think about it, you have to be prepared in a scenario when your spouse suddenly dies. Your problems are compounded if you have kids who are still very young to provide for themselves. Through life insurance, you get the most practical option to replace the income you lost when your spouse died.
4 – Buying life insurance helps you manage your debts.
Aside from covering daily living expenses after losing your spouse, you also can benefit from insurance in covering debts such as a mortgage. It is basically an essential aid to keep your afloat while you struggle and try hard to adjust to changes in your life.
5 – You can benefit from getting life insurance in a business partnership.
If you happen to invest in a business partnership, you should know that it makes sense to have insurance on your business partner’s life. The reason why you need it is that if your partner suddenly perishes, you will have the financial support to buy his interest from his heirs and then pay his share of the business obligations. It is a crucial step in keeping the company instead of deciding to sell it after the death of your partner.
6 – Another reason to buy life insurance is that you can pay off estate taxes with it.
One of the best things about life insurance is that you may use it to pay for estate taxes, which in turn keeps the assets and funds you saved for retirement safe from being used.