No one likes to think about dying.
That is probably why most of us put off taking out life insurance even when it would benefit us greatly.
In fact, taking out life insurance could provide a solution to many of the worries you have about dying – leaving your family behind with no one to look after them. Your family having to pay for your funeral. And more.
Today, we are going to share with you six reasons why taking out life insurance is so important.
#1 – It Can Pay Off Your Mortgage
Have you just bought a house? Well, there is no better time to take out life insurance.
If you die before your mortgage has been paid off then the responsibility of paying that debt will fall to your next of kin. Life insurance will prevent them from having to take on any of your financial commitments on top of their own.
You should consider taking out life insurance that will cover your mortgage. That way, if you die the people in your life will not be responsible for having to pay your mortgage repayments.
#2 – It Can Pay Off Your Debts And Medical Bills
Your mortgage isn’t the only debt that will be passed on after you die.
Any car payments, personal loans, medical bills, and more will be passed on to the people you love after you die.
This can be a huge financial burden, especially if they are already struggling to make ends meet. Your life insurance payouts could make this problem go away.
If you are ill before you die and rack up a lot of medical bills then a life insurance payout will make a huge difference to the people who inherit your money, property, and debts.
Long Term Disability insurance is something you should also consider taking out if you work in a job that could lead to you getting injured – you can find out more about this from Long Term Disability Lawyers.
#3 – It Can Support Your Spouse
Have you just got married? Then you should consider taking out life insurance.
In your marriage vows, you promise to love and protect your partner – one of the most practical ways to do this is to take out a life insurance policy so that you know they will be looked after, even after you have died.
Life insurance gets even more important when you start sharing assets with your partner.
#4 – It Can Cover Your Funeral Costs
The average funeral costs over $3000. That is a lot of money to ask your friends and family to put together on short notice and without any warning.
This is why having life insurance can be really helpful. Some of the money from the payout can be used to organize and pay for your funeral.
That way, you are not adding any extra financial burden on your family and they don’t have to compromise on the funeral that they hold for you. This can help them with their grieving process and prevent them from feeling too guilty for not throwing you a big enough funeral.
#5 – It Can Increase The Amount Of Inheritance Your Family Get
When you die, all the money that you have saved to pass on to your family will be taxed.
The inheritance tax will vary depending on where you live and how you store your money – but what you leave behind for them will be taxed by the government.
Your life insurance payout will not be taxed in this way. So, if you are looking to leave more financial support for the people who mean the most to you, then you should also have some of your life insurance payout set aside for them.
#6 – It Can Provide Financial Protection For Your Children
If you have children then one of the most responsible things you can do as a parent is taking out life insurance.
Your life insurance payment will mean that the mortgage on their home will be paid, so they will have somewhere to live. They will have enough money and support to look after themselves. And you may even be able to have some of the life insurance payments put aside to go towards their college fund.
There are so many different ways in which taking out life insurance can improve the lives of your loved ones, even after you have passed away.