One of the most important things we owe to our family is to protect and preserve their future in the event of our untimely passing. Although we never like to think of death happening to any of us, this is the cold reality of the dangerous world we live in today. It is similar to carrying a spare tyre in your car – you just never know when you’ll need it.
Life insurance is the ultimate solution to the question “who will take care of my family if anything happens to me?” This policy literally costs pennies on the dollar and is a virtual guarantee that your family will continue living in the way they’re accustomed, no matter what happens to you. The peace of mind it brings is incalculable.
What is Life Insurance?
Life insurance is a policy that enables the surviving members of a bereaved family to carry on with their lives without experiencing hardship after the death of the breadwinner.
Life insurance can also help protect the financial interests of a business if a key employee should die. It is perfectly understandable that no one likes to think about the consequences of their untimely passing. Yet, people die of accidents and diseases every single day. While diseases are a leading cause of death across the globe, thousands of people also die as a result of car accidents every year.
If you have a family that depends on your earning power, the important question you must ask yourself is: “Can my family afford to be without life insurance? Can my family afford to be without income if something should happen to me? What will happen to them if something happens to me?”
There are other types of life insurance that may provide benefits for you and for your family while you are still living. These policies can accrue a cash value on a tax-deferred basis and can be used for future needs such as retirement or your child’s education.
Who Needs Life Insurance?
Not everyone needs life insurance. However, if any of the following statements about you and your family are true, then you should seriously consider life insurance.
- You are married or have a partner who is dependent on you.
- You have children who are dependent on you.
- You have a parent or relative who is elderly or disabled and depends on you.
- You have a business.
- Your 401K retirement plan, pension and savings aren’t enough to protect the future of your loved ones.
- You have a large estate.
Life insurance represents food, clothing, shelter, education and basic income for your family if something should happen to you. It also represents only a few dollars a week outlay: insignificant amounts compared to the price your dependents would have to pay without this coverage. If you don’t have any dependents, you may still wish to pursue a life insurance policy to avoid being a burden to your loved ones in the event of your passing.
Why you need Life Insurance
If you are the main breadwinner and something were to happen to you tomorrow, the reality is that your children would never be able to afford an education; and it will be a really tough struggle for your family. Taking out life insurance means your family will be taken care of no matter what happens to you.
For example, should you become disabled somewhere along the way, the insurer will keep your insurance in force and pay your premiums for you. How’s that for peace of mind? Furthermore, with the right policy you won’t have to keep paying for life insurance into your 60’s, 70’s or 80’s when you may no longer need life cover to protect your loved ones.
Benefits of Life Insurance
Life insurance could provide several unique benefits that can preserve the financial security of your family in the event of the unexpected. Some of these benefits are not provided by any other financial instrument. These include:
- It provides a fast injection of cash to help your loved ones in the immediate aftermath of your untimely death. This can help your spouse make the transition from the time of your death to the time of a new income stream.
- It can be used to pay off your mortgage debt if your income is lost.
- Your loved ones can use your life insurance to pay off your credit card debt in the event of your untimely passing.
- Life Insurance can help pay for the care and education of your children. Your savings and investments over the years could help pay for the cost of an expensive university education including tuition, books, fees and living expenses.
- You can access your accumulated cash value without restrictions that exist on other assets such as IRAs and 401k plans.
- If you are a family with “special needs” children, life insurance can help provide for your child’s special needs.
- Permanent life insurance covers you for life, even if your health takes a turn for the worst. However, your premiums must be paid to maintain coverage.