The fact that you are reading this article suggests that you are interested or at least familiar with what life insurance is. While you may have heard a pitch from someone you know, maybe a friend or co-worker, you still aren’t totally sold with the idea of buying one. Well, it really is difficult to blame you for your doubts since purchasing life insurance isn’t cheap. Nevertheless, there are certain arguments for it that may eventually convince you.
1 – You can use the money to pay for the expenses when you die.
Being practical in life means preparing for your demise; and with a life insurance, you effectively cover the costs of your funeral and burial, relieving your family and loved ones of the burden of having to spend thousands of dollars, not to mention the fact that they have to bear the pain of losing you.
2 – There’s the option of covering for your children’s expenses in life insurance.
Being a parent means embracing the responsibility of taking care of the expenses of your kids. Most people are clueless that they actually can pay for additional coverage for their children’s expenses while they still live with you.
3 – Life insurance also serves to replace your spouse’s income.
As much as you hate to think about it, you have to be prepared in a scenario when your spouse suddenly dies. The problem gets more serious if your kids are still way too young to be on their own. By purchasing premium life insurance, you get some kind of replacement for the income you lost when your spouse died.
4 – A life insurance plan makes it possible for you to manage your debts.
Keep in mind that buying life insurance gives you another option to cover debts like a mortgage. Insurance must be considered as a crucial tool to keep your afloat as you try very hard to free yourself of debt.
5 – Life insurance is critical in business partnerships.
If you decide to make an investment in a business partnership, one of the first things you must focus on is getting insurance on your partner’s life. The rationale behind getting life insurance is that in the event that your business partner dies, you have the financial capability of buying his interests from his heirs and cover the costs of his share in the company’s financial obligations. It is a crucial aid to have for you to be able to keep the company and run it instead of selling it after the untimely death of your business partner.
6 – Life insurance may be used to pay off estate taxes.
One of the best things about life insurance is that you may use it to pay for estate taxes, which in turn keeps the assets and funds you saved for retirement safe from being used.