What is the one thing everybody needs, but far too few people seem to have? Life insurance. When most people are young and healthy, they put off buying a life insurance policy, and it’s only when they need it, they realize their mistake. Only 30% of people in the UK have life insurance, and if you’re among the 70% that doesn’t have one, then you need to.
You may be asking. “Do I need life insurance?” The short answer is, yes, you do! When it comes to life insurance, everyone may have different needs, without a doubt, you do need one. Life insurance is a fundamental part of your financial plan, and in this article, we’ll look at some of the most important reasons why you need life insurance.
1. Replace Lost Income and Protect Your Loved Ones
If you’re asking, “Why do I need life insurance?” then one of the most important reasons is to protect your family and loved ones. If you are your family’s breadwinner and they depend on you for livelihood, life insurance will replace your income when you pass away.
This is critical for people with young children, and people who know they have no other way to survive if they were to lose their only income provider. A life insurance policy will provide financial security for your family, and you won’t leave them helpless.
2. Cover Burial Expenses
At times, even something as basic funeral expenses can run into the thousands, and you may leave your family drowning into debt. Most people don’t think this far ahead about their lives, and truth be told, now one likes thinking about their own death or that of a family member.
Even if you have medical insurance, it may not cover all the expenses, and with the average funeral costs standing at £4,321, it’s a hefty amount for anyone. Some people choose to get final expense insurance or burial insurance, but to cover all the financial needs your family will have at that time.
3. Cover Spousal Contributions
If you have a stay at home spouse, it’s a great idea to have life insurance that covers them. Even though they don’t earn an income, stay at home, spouses contribute in a variety of ways, such as child care, cooking, and taking care of the household. If a stay at home parent passes away, they will leave all those responsibilities behind.
When that happens, you’ll either have to do everything yourself or hire help to do it. This is an integral part of life, especially when you have children, and you could soon realize that child care is quite expensive for most.
4. Cover Children Expenses
Apart from child care, there is a wide range of expenses that you need to cover, including activities like music, sports, tutoring, and not to mention college. Your children may be young, and it may seem like college is too far away, but one thing you can be sure about is that it’s expensive.
Having a life insurance policy to cover all these expenses can be the difference between having a worry-free life, or taking student loans, and worse, skipping college.
5. Pay Off Outstanding Debt
How much debt are you into right now? Consumer debt, mortgage, car loans, credit cards, and the like can leave tons of problems for your family. So when you ask “Do I need life insurance?” consider how much help might be for them to pay off all outstanding debts and how hard it would be without you.
Creditors may try to collect from your estate ad with life insurance, all lingering obligations will be well taken care of.
6. Life Insurance Is Affordable
Should I have life insurance? Yes, and one of the major reasons why is that it’s affordable. You have no reason not to have one unless you have been found ineligible for a policy, or you already have a pre-existing medical condition. Most consumers without life insurance think that it’s too expensive or too complicated for them to even consider, but it’s more accessible and more affordable than you think.
7. Cover Estate Taxes
Estate taxes are expensive, and chances are they will eat away at the inheritance you leave your loved ones. This is a broad topic, and if you have an estate, it’s important to consult an estate lawyer. If you have whole life insurance, the payments will last through the policyholder’s life and not for a fixed term.
8. Buy out a Business Partner
Some business partners get life insurance policies to ensure a stable transition if one partner passes away. Most of the time, what follows is a buy-sell agreement, which helps the business run smoothly without having to look for other parties to buy out their shares.
9. Pay Long Term Care for Special Needs Family Members
If you have disables or special needs family members, then you undoubtedly need a life insurance policy. The policy will not only support them when you pass away but also when you retire. In this case, whole life insurance is proffered because you may need to support a future generation.
Do I Need Life Insurance? You Now Have the Reasons Why You Do
Do I need life insurance? We all do, and we have provided you with ten of the most vital reasons why you need one. A life insurance policy will give you peace of mind because the cover will provide protection for any uncertainties your family will face after you leave them.
If you want to know about the different types of life insurance and which one suits you best, please get in touch with us or check out our website for more.