8 Reasons To Buy Life Insurance Now
Life insurance isn’t just for those of a certain age. Even when people recognize the value of life insurance, they often fail to take the steps to make sure their family or partner is protected. The truth is, life insurance is an easy step and is often inexpensive. Here are a few other reasons having life insurance is important.
Protect Your Family
This is an easy one. If you have dependents, you need life insurance. Your family depends on your salary for the necessities in life. The purpose of this coverage is to protect your income. Your family would still be able to operate financially even if your paychecks stop.
Debt
Life insurance can be used to pay off the debt you would leave behind. From a mortgage to other personal debts, you don’t want to leave that burden of payment on your family or spouse. When deciding on a life insurance policy, tally up your debt to ensure your family would be covered.
How Much Life Insurance Do I Need?
Understanding the policies and the amounts doesn’t have to be confusing. Use a simple equation to figure out the amount of coverage you need. Calculate your outstanding debt and five years of annual salary. If you’re a primary care giver or are in between jobs, use the average U.S. salary of $40,000 to signify your income.
Life Insurance Is Relatively Inexpensive
How much would you pay for peace of mind? Many people think life insurance costs are expensive, but that isn’t the case. A healthy person in their mid-thirties, for example, can gain coverage for about $30 a month for a $500,000 policy. Costs can increase as you age, so it’s wise to obtain life insurance in your younger years.
It’s About The Future
When you look at the numbers, life insurance per year costs about 1% of your annual salary. When you consider that minimal amount of cash protects years of your salary if needed, it’s really a no-brainer.
Know What’s Offered
Many people don’t know how much life insurance their employer offers, and often times, workers will overestimate the benefit. Review your benefits package to find out exactly how much coverage is offered at work, then look for a policy that can supplement that coverage.
Stay Current
Make sure your life insurance policy matches your life. Changes like a new child, marriage, a move, or even a raise at work can be reason to increase your coverage amount. Each year, review your policy and make any needed changes.
Final Expenses
Life insurance allows your family to cover the costs of your final arrangements. The average funeral in the U.S. costs $8,000. In an unexpected tragedy, your family may not have that amount in savings. Life insurance can eliminate the financial stress in an already traumatic situation.
It’s easy to push off looking into life insurance coverage as no one wants to believe their time could be cut short. However, with the minimal costs and peace of mind that comes with knowing your family would be taken care of financially, the benefits far outweigh the worry and short time it takes to discover the right plan for your situation.
