Imagine if you were to die suddenly without proper protection. The results would be devastating. Having a talk about life insurance is never fun but if you sit down with an expert who truly has your best interest in mind, you may find that life insurance is something that you want and need. Why? Here are 5 things about it that makes life insurance so important:
1. Work Insurance Just Isn’t Enough
Most people know that getting life insurance at a young age is important. They never push through with it because they believe that the insurance their company gives them would be enough to support them one day.
Getting life insurance through work is most certainly a great bonus but there’s a reason most life insurance agents recommend that work insurance and personal insurance be kept separate. And it’s not a tactic for agents to get more clients.
The thing is your work insurance is only useful so long as you are still associated with your company. If the company goes bankrupt, the insurance goes away. The same goes if you were to quit or if you were fired.
2. Your Kids Won’t Have To Be Left Holding The Bag
Due to the high cost of living in the US, the majority of American families only earn enough to be able to sustain the family. Very little money is left for opening a savings bank account.
You never know. The bustle and hustle life might be enough to cause an one accident that will change the lives of your children.
Not only do the kids have to endure the grief of loss. At the same time, they also have to face the tragic truth they are completely broke, parentless, with no life insurance, and therefore would need to fend for themselves from now on to survive.
3. Life Insurance Can Be A Lifesaver For Businesses
Companies can experience great financial loss when a key employee passes away such as a director board of CEO of a company.
As a matter of fact, a similar scenario actually happened to a company owner that we’ll hide under the pseudonym John.
John was eager about technology. Over the years, he was able to grow his efforts into a multi-billion company.
Due to the expansion that happened, his board had become concerned about the financial loss the company will endure if something were to happen to John.
Despite John’s protestation, the board insisted that life insurance be applied under John’s name. John is a healthy and fit young man believing that he would live to a ripe old age.
Unfortunately, he was wrong. John suffered from a heart attack that cost him his life.
Following John’s demise, sales and stock of the company plummeted. If not for the life insurance policy that the board purchased, the company wouldn’t have been able to stay afloat during the while when the new CEO rebuilds investor trust and keeps the company back on track.
4. It Adds More Financial Security To Your Life
Not everything about life insurance has to be all tragic. Sometimes your reason for getting life insurance can be as simple as wanting to live debt-free.
This can cover a lot of aspects about your life. Let’s first talk about the most crucial - your health.
While regular check-ups suffice right now, that won’t always be the case when you start building your life or as you age.
Medicines get more expensive. General doctors just won’t do it anymore. All of a sudden, getting a check up means setting up an appointment with a specialist. In the long haul, it can be quite expensive.
But with life insurance, you won’t have to pay a single penny because you’ve already paid for it all in small increments when you were younger.
Now, let’s look at a different scenario. Let’s say you were married and already have kids. A common priority among couples would be to ensure good-quality education for the kids. At the same time, you also want to enter other ventures like starting a business and such.
With that, getting life insurance with additional coverage becomes necessary. What makes life insurance so important is that for just a small fee every month, you’ll have all your significant expenses all covered.
5. Be Worry-Free When You Retire
You should only struggle once in your life and that’s during your early years. That’s when you grind and save as much as you can for your future. The moment you retire, you’d want to enjoy life to the fullest just as any young college student would tell you.
But after getting a taste of the bitter reality of life, some people start to doubt if living a good life after retiring is even possible or if it’s just a myth.
It most certainly is possible if you play your cards right. Investing in life insurance at a young age ensures you that your significant expenses will be covered as you grow older allowing you to live peacefully at retirement age.
How Much Life Insurance Do You Need?
Why is life insurance so important? That’s the easy question. What’s more challenging to answer is how much and what kind of insurance you need.
Don’t be afraid to add coverages to your current policy. Remember that the goal of life insurance is to give you stability in the future. Whatever investment you put into it right now will be returned back to you in the future when it becomes of better use.
At the same time, your own income will also play an important variable in how much insurance you should get including age and sex.
Men are usually more expensive to insure compared to women. A general rule of thumb in determining the right life insurance for you would be your annual salary.
Multiply that 7 or 10 times and that would most likely be how much life insurance you need.
We’re here for you whenever you’re ready to talk about insurances. You can talk to us through the Contact Us page. Upon receiving your message, a representative will contact you right away.