Reasons To Have Life Insurance
You have your car insurance, homeowners insurance, and perhaps even disability insurance. All of those
are necessary. But just as important (if not more important) than those is life insurance. Life insurance
ensures financial stability for your family and business. Here are some reasons why you should purchase
life insurance.
Protect Your Family
If you pass away, your spouse and children will, obviously, lose your income. This could mean having to
move from the home, that your spouse would have to get a second job, and that your family could not
afford to live the same lifestyle. With the death of a loved one, a family’s life is changed forever.
Protect Your Biggest Asset
How can you not insure your number one asset... yourself? Your income is by far your biggest asset and
the most important asset to protect. If your income averages $50,000 a year over your working years,
this is about a $2,000,000 asset; a $100,000 income is about a $4,000,000 asset. Most people don’t have
10-20 times their annual salary saved yet. That’s about what would be needed to pay expenses for your
family if you’re gone. While some of you may already have life insurance, in many cases it may not be
enough.
Protect Your Health
The younger and healthier you are when you buy it, the cheaper it is. When you’re young and
healthy, you may not think you need life insurance as much, but the fact is that if you buy it when you’re
younger and healthier, it’ll just be cheaper. You never know when you may develop a health issue
that could keep you from getting coverage. Health issues have a funny way of just popping up when
they’re least expected. Don’t strictly rely on your life insurance through work. The coverage amount is
never enough, you don’t control the life insurance and it’s quite often temporary.
Provide a Legacy
Want to leave a legacy for your future grandchildren? What better way than ensuring your estate will
actually have some legacy to pass on! You may want to leave money to a church, school or other
favorite charity. Life insurance proceeds can be used for this purpose.
Protect Your Business
Insurance protects your business from financial loss or any liabilities in case a business partner dies. The
death of a key employee at a business could have a huge financial impact on the business. Insure your
key employees. Having life insurance on partners in a business ensures there will be money to purchase
the other partner’s interest upon death.