Why do you need life insurance?
Most of us need life insurance at some point in our lives but it’s something that often gets pushed to the back burner on our “to do” lists. Although not very exciting, life insurance is designed to provide your family with financial security in the event of your death.
It’s easy to procrastinate buying life insurance when you are young and healthy. But the longer you wait, the greater the chances of something happening before you have coverage and the more expensive it becomes. So even if you don’t have an immediate need, you may want to consider buying a “starter” policy for the future, especially if people depend on your income for support.
Here are 5 reasons to have life insurance protection.
- Replace Lost Income
Life insurance provides financial security to your loved ones after you pass away. What would happen if you were to die suddenly? Does your family rely solely on your income? Your income might cover a portion or all of your family’s daily needs.
Housing, food, utilities, clothing, car maintenance and health care premiums are all part of your monthly budget. Your family will have to cover these expenses without your income and a life insurance policy can help.
- Pay Off Debt
Some debt doesn’t go away when you die, which means your loved ones will have to use money from your estate or sell off other assets to cover them. This could leave less money to pay for other expenses.
Life insurance can help pay for any debt you leave behind, including credit card debt, business debt, personal and/or educational loans and mortgage debt. Life insurance allows those you leave behind to take care of any lingering financial responsibilities.
- Pay for Funeral Expenses
Sadly, the average funeral cost is between $7,000 and $9,000. While you can pre-pay for your funeral, most people don’t think that far ahead and pre-payment comes with some risks. Instead, your family can use some of the death benefits from your life insurance policy to help pay for funeral expenses. To do this, the beneficiary of the policy can direct some of the death benefits to the funeral home, or they can pay out-of-pocket and use the death benefit as reimbursement for these expenses.
- Pay for Education Expenses
If you have children, life insurance can help cover future childcare and education expenses, especially for college. Even if you’ve already started contributing to a 529 college savings plan, the death benefit from a life insurance policy can provide additional money to help cover your children’s education in the event of your death.
- Estate Planning
When someone passes away, their heirs often face estate and inheritance taxes on any assets they receive. If you’re worried about your loved ones getting hit with a big tax bill, a life insurance policy can help.
How Much & What Kind?
Understanding life insurance and how much coverage you may need is an important part of your long-term financial plan. Making plans to help support your family’s financial stability when you pass, can help minimize the stress at an already difficult time. Depending on your financial goals and needs, life insurance can be an important part of your plan.
To schedule a time to chat with a TruStage Life Insurance advisor, please call 888-492-1901 or visit our website today!