We ask ourselves, why buy life insurance? Sometimes in these rather difficult financial times, we juggle our bills, deciding what creditor we could get away without paying this month. It seems easier for us to choose the insurance payment to escape. Big Mistake!
We need life insurance, and we need to make sure our monthly premiums are paid on time. You may think that this payment is a luxury you can remove, but that’s not really the case! It’s a must, especially in these challenging economic times.
There are many reasons why you should have life insurance, even in the event that you don’t have any responsibilities to fulfill. Let me clarify:
Probably the most obvious reason we get a life insurance policy is to protect those left behind us. Since our passing is bad enough on our nearest and dearest, we most certainly do not want to saddle them with our burial expenses and debt. Our life coverage takes care of those expenses and much more.
You really need to think ahead and have a contingency plan, which is the major reason why we buy life insurance. For instance, if you have your own home and something occurs to you where you pass away, your life insurance coverage would act as mortgage protection and would repay any outstanding mortgage balance after your departure.
We can even purchase term life insurance which can be used to cover an unsettled mortgage balance. You will need to opt for a term that coincides with the amount of your mortgage payment interval.
You Can Replace Your Current Income:
Your life policy can have a provision in it that allows for your existing income to be paid to the beneficiary of your choice in case you pass away suddenly. It’s set-up so that the other person can live in the way used and keep the same regular of living.