5 Reasons Why You Need Life Insurance
February 2, 2023
Although most people know what life insurance is, only a few fully understand the benefits of what it does. You might wonder if it is really worth investing in coverage like this. The truth is that life coverage is essential for many reasons. Understanding the benefits is the first step toward genuinely appreciating these policies.
Understanding Life Insurance Benefits
With so many different uses for life policies, it’s no surprise that many do not understand its benefit or the role it plays for your family. Why do you need life insurance? You don’t. Your family does. Your policy provides for your family’s needs and covers your outstanding obligations.
Life Insurance Provides Financial Security
You decide how much the death benefit is for your life policy. That means you can choose a policy substantial enough to provide your family financial security in the aftermath of your death. When you want to establish a significant inheritance for your immediate family members, a life policy’s death benefit can do that.
Life Insurance Helps Cover Bills
Whether or not , you were the primary income earner, the grieving process interrupts the normal flow of life. You want to make sure that your loved ones can pay the bills for a while after your death. A life policy’s benefit can cover the bills, so your loved ones do not have to struggle. If you have credit card debts, business expenses, or other liabilities, your policy benefit can also cover these costs so that they do not burden your family.
Life Insurance Replaces Lost Income
One recommended calculation for determining the death benefit of your life policy is to decide how many years of your income you wish to replace for your family. Multiply your annual salary by that number to provide your loved ones with a replacement for your lost income and peace of mind.
Life Insurance Covers Funeral Costs
If you don’t have the means to pre-pay your funeral costs but wish to protect your loved ones from that burden, invest in a life policy that can cover your final expenses. Many people choose a separate policy to address their funeral costs so the family does not need to pay for it.
Life Insurance Pays For Education Costs
Ensuring that children have the means to attend school is vital for many people. When you want to provide your children with educational opportunities even after your death, you should consider a policy that pays into an education trust. It offers your children the funds to pay for higher education when they are ready without student loans.
Life Insurance Policies Help
With so many financial benefits, it is easy to see how life insurance can help. Consider your family’s financial needs in the event of your death to ensure sufficient coverage.
About 1891 Financial Life
At 1891 Financial Life we don’t just sell policies, we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs.
Our portfolio is extensive, ranging from various life insurance policies to our annuities to support your financial needs no matter what stage of life you’re in.