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 – Life insurance is primarily about paying for the expenses upon your death.
If you really want to be practical, you should think about the burden that your family will face when they have to cover for the expenses of your funeral and burial; not to mention the emotional agony they have to endure once you are gone.
2 – You can get a policy that extends its coverage of your children’s expenses.
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 – There also is life insurance intended to replace the spouse’s income.
Yes, it is painful and very inconvenient to think about the possibility of your spouse suddenly passing away, but you have to be prepared for it. Your problems are compounded if you have kids who are still very young to provide for themselves. With life insurance, you have the best opportunity to stand on your own feet since it serves the purpose of replacing the income you expect to lose when your spouse dies.
4 – Life insurance also helps in paying off debts.
Keep in mind that buying life insurance gives you another option to cover debts like a mortgage. Look at it as your savior as you try hard to stay afloat in these struggling times.
5 – Life insurance can also be useful in a business partnership.
If you happen to invest in a business partnership, you should know that it makes sense to have insurance on your business partner’s life. The idea behind obtaining life insurance is that if your business partner dies, you have the capacity to buy his interests from his heirs and at the same time cover the costs of his financial obligations to your company. It is a crucial step in keeping the company instead of deciding to sell it after the death of your partner.
6 – Another reason to buy life insurance is that you can pay off estate taxes with it.
Lastly, having life insurance in place is helpful in paying estate taxes, which in turn allows you to avoid putting your assets or funds built for retirement at risk.