Are you wondering how important it might be to purchase life insurance? Just ask yourself this instead. "Would my death leave my family in a financial bind?" If it would, it is time for you to seriously start shopping for life insurance. Life insurance can offer peace of mind, ensuring that your family will be taken care of in the event of your death.
Having a Life Insurance policy to protect your loved ones is regarded as a sound financial planning tool. There are so many reasons why having a life insurance policy to protect your loved ones is regarded as a sound financial planning tool. Below are listed just some of those reasons:
1. It can protect your loved ones from income loss and financial catastrophe. Whether you have young children, a spouse or even elderly parents who depend on your income, in the event of death, your Life Insurance policy can serve as a partial replacement for that lost income so that your loved ones do not endure financial crisis. It can pay off the Mortgage on a home, Pay for monthly utilities, property taxes, car payments, food, clothing, college education, church mission along with many other monthly and annual expenses to support a family's needs.
2. It can pay for your final expenses, such as burial costs, estate planning and administration costs, debts and medical expenses, so that your loved ones will not be unexpectedly burned by these costs.
3. It can be an inheritance to your heirs even if you currently have no assets.
4. It can be used to pay estate taxes, so that your heirs won't be forced to sell all of their assets at below value sale prices to cover tax payments.
5. It can also be a form of savings account for the policy owner since some policies allow you to build cash value, which can be withdrawn or borrowed at your request.
6. Do you have a chronic medical condition that makes you "uninsurable"? If you've been turned down for an insurance policy because of a medical condition and you are between the ages of 50 to 85, a graded whole life insurance might be a viable option for you. Graded whole life is ideal for those individuals who expect to live for at least two or three more years, but whose medical condition makes them difficult to insure.
7. And of course, just the invaluable security of knowing that your family will be taken care of financially when you are gone from them.