If you are over 18, and have a steady job or a family, you’ve probably been offered life insurance – and likely more than once. Your Auto or Home insurer may have pitched it as an add-on to your current insurance products, or perhaps you received a courtesy call from an Insurance Agent when you had a new baby. There are many life events that open doors to the world of insurance; you just need to know which door is the right one for you.
Many people prefer to avoid the insurance conversation as it is a product that is used after life has ended – that being said, it is one of the smartest things you can do for the family you leave behind. Read over these top 7 reasons to have a life insurance policy and it will be clear why:
1. Funeral Expenses
On average, a funeral costs about $6,000 and can often be higher. Even the most basic life insurance policy will include funeral costs in the coverage. This will allow your loved ones to mourn without the worry of paying off a large expense once the funeral is over.
2. Your Mortgage
Most homeowners will purchase mortgage insurance in the event of their untimely death, but a good life insurance policy can provide additional assistance. Consider a couple who both earn income, and one passes away. A life insurance policy can enable the surviving individual to continue to make payments on any financial commitments until they figure out their next course of action.
3. Medical Expenses
Battling a chronic illness can significantly impact anyone’s financial well-being and, in the event of death, you could be left with substantial medical expenses. In the United States, medical expenses continue to be one of the leading causes of bankruptcy and even though we have the privilege of universal health care here in Canada, these costs can still lead to financial ruin. A good life insurance policy will cover expenses that aren’t covered by other forms of insurance thus making sure the survivors won’t have to.
4. Day to Day Living Expenses
What would you do if some or all of the household income you are used to receiving was suddenly taken away? It may become impossible for the remaining family members to make ends meet. A life insurance policy will provide the money for daily living expenses and the peace of mind while the family finds replacement income.
5. Kids’ Schooling Funds
The proceeds from a life insurance policy may be used to pay off college loans, or set aside for your kids’ education when the time comes. Additionally, there are some policies that specifically designate funds for education.
6. Peace of Mind
Life insurance is like the ultimate “set it and forget it” kind of product. It may feel a little uncomfortable while you progress through the process, but once it is done, you can relax knowing that you are taking care of you and your family’s future. Once equipped with the knowledge that your spouse and children will not have to face additional financial stress after your death can be incredibly gratifying.
7. Lock in at Lower Rates
Like most things in life, the older you get, the harder it is to get some things done. Insurance is no different. The younger you are, the cheaper your premiums will be. If you can get in while you are younger and without any pressing health issues, you can lock in your policy at the lowest rates. The best thing to do is to call a professional today and get a quote.