The Reasons You Should Think About Getting Life Insurance

As a parent, you may wonder from time to time about what would happen to your family in the event something were to happen to you. You hear those heartbreaking stories regularly about people dying from sudden heart attacks, car accidents or in other sudden, unexpected ways which is why planning for your family in those circumstances, via a good life insurance policy, is so very important. Below I will be discussing the many reasons you should think about getting life insurance if you do not have a policy already…..

Provides Income For Your Family

The biggest reason for wanting to have a good life insurance policy is because it can provide for your family in the event something were to happen to you. The trick is to find the right policy for you and your families needs and I like a good life insurance policy that requires no medical exam. Before choosing the perfect policy for you, consider the amount of protection you are looking for and what bills and debts you want covered in the event you needed it.

To ensure that you choose a policy that is the right fit for you and your families needs, consider what your salary is to start. Let’s say you make $85,000 a year. It is a rule of thumb to find a policy that can provide 7 to 10 years of income for your family at minimum. You can find policies, both term and whole life insurance policies that can provide you with $1,000,000 worth of coverage but it is important to understand the difference between the two. Term life insurance is a very popular option as it is more affordable. With a Term Policy you pay a set fee for anywhere from 10 to 30 years…. whatever the life of your policy is. Once that policy ends your coverage ends and you have to create a new one to ensure you are still covered. There is also the option of Whole Life Policies and they have a higher monthly premium but the policy lasts for your lifetime and it also has a cash value component that you can borrow against if you need it.

Covers Debts

In this day and age that we live in, almost everyone has debt of some kind or another. For those that have a large amount of debt, such as an outstanding mortgage, credit card debts, and even estate taxes, it is important to think about who will be responsible for these debts in the event something were to happen to you. To add to that, are funeral costs which average around $7,000 for embalming, services and the burial or cremation. Usually these financial burdens end up falling onto the shoulders of the surviving family members which is why finding a good insurance policy is a must as it can defray the costs of debts and a funeral, leaving a nest egg for your family.

Think about it….if anything were to happen to you that would mean the loss of one income which can be detrimental to any family and those debts can worsen the problems that the surviving family members are already facing. Ensuring your family is covered eliminates this extra stress and worry as your family members do not have to worry about losing their home or vehicles after the passing of the bread winner of the family, because you are covered. In the event the main earner does not have that much needed life insurance coverage….the family could lose everything.

Pay For Children’s Expenses

Another reason to ensure that your family is covered in the event something were to happen to you, via a good life insurance policy, is to ensure that your children are cared for. There are all kinds of costs associated with having and raising children including childcare, plus also other school-age needs such as after school activities, sports, music, tutoring or anything else that your child or children may become involved with during their childhood.

Most importantly, you can not forget about your child’s college expenses, no matter their age. Having a good life insurance policy may make the difference between your child being able to go to college or not. If you ensure you have that much needed life insurance policy to cover your family in the event you are no longer around, you can rest assured that your child can go to college without worrying about the cost, taking out large student loans or simply skipping College all together. The average cost of tuition and fees in the US grows every year, in fact in 2022 the average cost of a private college grew to $57,570 per year which when multiplied by four years is a small fortune. Your policy can act as an education fund to help pay for their college without them ending up with a mountain of debt in the process.

Supplements Retirement Income

Another reason that you will benefit from a good life insurance policy is that it can also help to supplement your retirement income. Even with your retirement savings, unexpected bills that pop up can really hurt when you are on a fixed income. Fortunately, if you have a permanent and whole life insurance policy, you can often incorporate a “savings” component, known as cash value that you can withdraw in the event you need it.

Typically, the life insurance premium amounts increase, on average, about 8% to 10% for every year of age; it can be as low as 5% annually if in your 40s, and as high as 12% annually if you’re over age 50. If you are purchasing a Term Life Insurance Policy, the insurance premiums stay the same price for the duration of the policy whether that be 10 or 30 years which is something that I appreciate as it is the more affordable option for me and I like knowing my family is covered in the event they need it.

Peace of Mind

Having a good life insurance policy in place will give you the peace of mind that you are looking for. Having life insurance gives you the comfort of knowing that, if you pass away within the policy term, your loved ones will have a lump sum to help them to manage their finances during those trying times. It is already hard enough to lose someone that you love dearly but then to be burdened with the worry of how you will make it financially can be unbearable. That is why preparing for the unexpected by having a great life insurance policy to cover your financial needs is a must as it will help your surviving family members to maintain their standard of living all while learning to live life on their own.

Deliciously Savvy received compensation and/or product in exchange for my honest review and all opinions are 100% my own. This is a collaboration between Deliciously Savvy and Responsival.