The Importance of Life Insurance

Life insur­ance is a con­tract where an insur­ance com­pa­ny promis­es to pay a sum of mon­ey to a des­ig­nat­ed ben­e­fi­cia­ry (ex. spouse, depen­dents) if the insured indi­vid­ual pass­es away. That sum of mon­ey is referred to as a death ben­e­fit and will go to the des­ig­nat­ed ben­e­fi­cia­ry. Life insur­ance isn’t manda­to­ry but has made peo­ple con­sid­er its pur­chase because of its ben­e­fits. Human life is pre­cious and irre­place­able, and the unex­pect­ed loss of a loved one can dev­as­tate the fam­i­ly emo­tion­al­ly and finan­cial­ly. There are three rea­sons why you should con­sid­er get­ting life insur­ance.

1. To  Pro­tect Your Fam­i­ly

A pri­ma­ry rea­son to con­sid­er get­ting life insur­ance is to pro­tect your fam­i­ly against the finan­cial prob­lems that are asso­ci­at­ed with the pre­ma­ture death of a loved one. The finan­cial dif­fi­cul­ties include unpaid med­ical bills, funer­al expens­es or any debts out­stand­ing. A ben­e­fit pro­vid­ed by the insur­ance com­pa­ny will help to cov­er these expen­sive costs. A life insur­ance pol­i­cy in place pro­vides finan­cial sup­port to the deceased’s fam­i­ly, pro­tect­ing them from future cred­i­tors.

2. Life is  Unpre­dictable

Life is unpre­dictable. No one knows when they will pass away or how it will hap­pen. All of this is unknown and a prime rea­son to pur­chase life insur­ance. If your fam­i­ly depends on your income for finan­cial sup­port, you should con­sid­er pur­chas­ing life insur­ance to pro­tect them from unex­pect­ed eco­nom­ic costs and hard­ship. We don’t know what will hap­pen in the future but we can do things that will make life in the future eas­i­er for our loved ones once we’re gone.

3. To Bring Peace of Mind

Life insur­ance helps to bring peace of mind to the fam­i­ly and loved ones of the deceased. No amount of mon­ey can ever replace the feel­ing of a loved one but an insur­ance pol­i­cy can help bring peace of mind to the fam­i­ly. Hav­ing life insur­ance cov­er­age will give peace of mind to you and your fam­i­ly, know­ing there is help for the future. You need to wor­ry about one less thing once you’re gone. With the even­tu­al­ly of death, life insur­ance helps to pro­tect your spouse and chil­dren from the uncer­tain­ties of tomor­row and pro­vides them with the sup­port to get through dif­fi­cult times.

There are many rea­sons why an indi­vid­ual will choose to pur­chase life insur­ance, and because of these, there are many poli­cies to choose from. You choose from term, cash val­ue, whole or uni­ver­sal life insur­ance. With var­i­ous poli­cies to choose from, one is avail­able to suit your needs and lifestyle. Life insur­ance m  not be a phys­i­cal object that can be seen or touched, but it is anoth­er impor­tant way to pro­tect you and your fam­i­ly from the unex­pect­ed.