Although it’s highly beneficial to have life insurance, many people don’t realize this fact until it’s too late. It often happens when a spouse dies and they don’t have the financial resources to cover a number of expenses. At every stage of your life, there’s a reason to have life insurance. Whether you’re single, married or divorced, a life insurance policy should be part of your financial plan. Let’s take a closer look at different reasons why you need life insurance.
1. Pay for Funeral Expenses
The most obvious reason for getting life insurance is to pay for the funeral expenses of a loved one. This can be a spouse, significant other, child, parent or anyone else for which you provide care. Equally as important is making sure your loved ones don’t have to worry about your funeral expenses if you pass away.
2. Replace a Spouse’s Income
Many families live on two incomes, which means there will be a problem if one person dies. Having life insurance will protect your family by enabling you to replace your spouse’s income for a period of time. The money can be used to make sure you’re able to make your mortgage payments, cover medical insurance and pay for anything else that you were able to afford your loss.
3. Cover Your Child’s Education
If you have an education fund for your child, that’s something you’ll want to keep, even if you or your spouse die. A life insurance policy will enable you to do so. Losing a parent is difficult, but there are ways to mitigate the impact that it will have on your children. Let’s face it, the cost of education is steadily increasing. It’s also more difficult for young people to compete in the job market when they don’t have a good education.
4. Pay Off All Debts
In addition to paying your daily living expenses, a life insurance policy my enable you to pay off all of your debts. It can serve as a way to ensure you’re solvent after your spouse dies. Some expenses you don’t really think about until you no longer have a sufficient income. Whether it’s student loans, credit cards or daycare, life insurance can help you take care of it.
Without a doubt, not having life insurance is a mistake that you don’t want to make. Even if you start out with a limited policy, you’ll want to make sure you’re covered because there are many benefits. There are some policies that don’t require you to have a medical exam, which means they are easy to obtain.