Despite the adverts on social media or television about the importance of life insurance, the only time some people actually decide to get one is when a friend or acquaintance sells them one. It is quite a rare occasion to see someone buy life insurance because he wants to.
This begs the question of if life insurances are really as important as they are advertised. The answer is yes. One of the life insurance questions that usually pop up in our minds is: “how does getting life insurance benefit me?”
1. It Pays Up Final Expenses
You might be surprised how easily the funeral and burial can run into tens of thousands of dollars. Living does not come for free. The same goes for passing away. The worst part about it is that the burden of paying off everything would immediately go to our immediate families.
The great thing about having life insurance is that it will easily take care of whatever expenses you have for your goodbye ceremonies. You may not be able to take advantage of your life insurance while you are alive but it will most certainly take a lot of financial worries away from your loved ones.
2. It Covers Your Children’s College Education
As we’ve said, you may not be able to use your life insurance but that does not mean that your family won’t be able to.
Not a lot of families can afford to take their kids to a high-quality college education. For life insurance holder, this won’t be much of a problem because you can simply buy some additional coverage for your children’s education.
3. It Can Replace Your Spouse’s Income
Due to some unfortunate occasions where your spouse passes away, you are going to need some additional income to cover the expenses you have at home.
Your life insurance can help in sustaining your lifestyle without having to look for an extra income. When a spouse passes away, your expenses can get a bit higher than usual due to household tasks that you may need to outsource from other individuals.
4. It Can Pay Off Loans And Debts
As you progress in your life, you are going to experience applying for different loans to buy a car or even your dream home.
You might have imagined things to go splendidly until the time when you grow old but one cannot avoid going through unexpected encounters.
If ever you find yourself in a situation where you are having trouble paying off a debt or loan, your life insurance has a way of saving you from having to sell your properties to solve the problem.
5. It Can Buy Your Business Partner’s Shares
If you are into business ventures then you will most certainly find life insurances handy.
You may be good with your business partner right now but there will come a time when you will be expected to purchase the shares of your business partner. The idea of your business partner passing away seems a bit farfetched. It might even take a long time before that happens but in case it does, you need to have the capacity to purchase his shares.
Buying life insurance gives you the guarantee that you will have the financial capacity to do so. It’s not just the shares. You also need to be able to pay off the company obligations that the two of you has without having to sell the company that you worked so hard to build up.