Feel the Need to Buy Life Insurance? Here Are Reasons You Should
Life insurance is a topic that not everyone likes to talk about and certainly not a process anyone enjoys. Although it sounds more like taxes and death, purchasing life insurance is a vital part of life and an essential element of stable financial planning. A lot of people are aware that having life insurance is necessary, however, most people would procrastinate until there is a main life event that persuades them to buy it.
There are serious benefits to purchasing insurance earlier in general, particularly if you are facing debt, married or getting married soon, starting a family, or if you own a business. If you are thinking of getting life insurance, here are the best reasons why you should.
Reason #1 If you are expecting a baby
If you’re planning to start a family in the following year or so, now is the right time to purchase life insurance.
You must consider that everyone’s health declines with age. And if you wait longer to buy a policy, the bigger the eventual cost would be. Another, if one parent will be retiring from a steady paycheck to stay home for good, then there’s even more serious reason to arrange a financial safety net prior to having kids.
Meanwhile, if you’re already pregnant and you’re the one who brings home the bacon for the family, it’s possible to buy life insurance but you’ll most likely get the best rates if you undergo the medical exam before or after pregnancy. Also, if you’re already carrying a baby and you feel the need to buy life insurance, several insurance companies will let you retake your medical exam a year or two after giving birth and then modify your rate accordingly.
Reason #2 Financially supports ageing parents
A good thumb of rule is that when someone depends on your income to live, you would probably need life insurance. If you will assist your ageing parents, or plan to in the future, a life insurance policy assures that they can access some money for long-term care or personal expenses if you can no longer provide for them.
Reason #3 You’re getting married
If your soon-to-be spouse depends on your income to live the lifestyle you share, it would nice to get life insurance. Either they bring in their own paycheck or not, having a life insurance policy in place assures they can maintain the same standard of living if you ever pass away early.
Reason #4 If you want to achieve long-term goals
Life insurance is an instrument that provides capital for the long term, it can help you meet your long-term goals including buying a home or getting into a retirement. It can also provide you with unique investment options that come along with different types of policies. There are several policies that are tied to specific investment products that pay dividends depending on their performance. If you are going for an investment-linked policy, make sure to read the fine print to be completely informed of the potential risks and returns.
Reason #5 Buying insurance is cheaper if you are young
Although not every millennial need to have this type of insurance policy, especially if you haven’t created an emergency fund or you’re still feeding on your parent’s money, then insurance shouldn’t be a prime concern. But if you do have dependents or you have co-signed a loan with your parents or any other member of your family or friend, you should begin considering buying a life insurance policy whether it be a student loan or a home loan. So even if you’re single, there may be other dependents and you need to make sure that they’re taken care of.
Reason #6 Your business will be taken care of
Did you know that life insurance will not only cover for yourself and your family? There are several insurance policies that can take care of business. If you have a business, your business partner can buy your portion of the business without any difficulty. Your business partner can enter into a buy-sell agreement and the payout would go to the deceased partner’s nominees, but there is no need to give them a stake in the company.
Reason #7 Gives you peace of mind
All of us we’ll face death. During a tragedy, the least you can do to help your family is to seal their financial future. It doesn’t matter if it’s a small policy or not, as long as you’ve done your effort to help them, it will be a big thing for them to tide over difficult times.