Why Is Life Insurance Important?

Why is life insurance important?

The answer to that question is often best for to you to determine.

Life insurance is an essential form of financial protection and yet millions of Americans do not have any type of life insurance policy.

More so, it is an estimate that up to 56 percent of those who do have life insurance believe that the amount they have is inadequate.

You know better than anyone the reasons you might need life insurance if you were to die. As you consider purchasing insurance, ask yourself, "Why would life insurance be important to me?."

Financial Protection

From car accidents to unexpected illnesses, individuals may die at any time.

Most people are living longer, but there is no way to know when something is going to happen to you. It is because of this that so many people invest in life insurance.

  • If you carry a mortgage, and are a breadwinner in the family, life insurance may help your family to keep making mortgage payments at the time of your unexpected death. See Tips for Mortgage Insurance
  • If you have debt, including credit cards, student loans or personal loans, life insurance can cover your family to allow them to go on living without having to deal with the debt.
  • Most families rely on two incomes. If you or your spouse died tomorrow, what would your family do to make up the lost income? Would they need to move, take on additional employment or reduce their lifestyle?
  • Life insurance can also be an additional way to supplement your retirement income, or to help you in difficult times, depending on the type of insurance you purchase. You may be able to borrow against it or use it for retirement income. It can help your family to pay for long-term health care costs, too.
  • You can use life insurance death benefits to leave something behind for your heirs. The death benefit may also help to cover funeral costs

When you ask, why is life insurance important, you have to consider what would happen if you died tomorrow.

  • What would happen to your children's education? Would they be overridden with student loans to pay for college?

The unexpected is just that and that often leaves families not only emotionally devastated by the loss of their family member but also financially ruined. Why is life insurance important to so many people? It is because it provides a range of benefits for your family members.

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