Most adults don’t have life insurance. This is unfortunate because life insurance is an important part of any financial plan. Life insurance is vital for anyone who has people depending on them financially.
The main reason people don’t have it is because it’s connected to death. No-one likes to think about their own death but it’s going to happen to all of us sooner or later. We all need to be prepared for when that day comes.
Too many people are walking around without life insurance and thinking that they don’t need it. If you have children then you definitely need it.
The money isn’t for you, it’s for the ones you leave behind. Your responsibility to your family doesn’t end when you die. If you’re wondering if you really need life insurance then here are 6 reasons why:
1-No-one knows when their time is up
When people are young they think they’re invincible. People in their 20’s think they’re too young to die. Obviously that isn’t true.
No-one knows when their time is up, you can go at anytime. Get you a policy as soon as possible.
2-To pay for your final expenses
When you die your family will have to bury you. I know that sounds obvious when you read it. Have you prepared to pay for your own funeral?
The average funeral in North America costs between $7,000- $10,000. Most people don’t have $10,000 laying around, do you?
Don’t make your family have to raise money to bury you. Your family will already be dealing with emotional grief from losing you. Don’t add a financial burden on top of their pain.
3-To replace your income
It will be a major blow to your family to lose your income when you pass away. A sudden loss of income could lead to your family having serious financial difficulties. It could lead to them not being able to keep up with rent or mortgage payments which could lead to eviction.
Having enough life insurance can help your family stay afloat while they’re dealing with your absence. Providing them with ten years or so of your income will at least give them time to figure out how to replace you financially.
4-To pay off debts
Depending on how much insurance you have, you may be able to have any remaining debts to be paid off. If you live in a house then maybe you’d want your loved ones to pay off the mortgage in full.
Having the ability to pay off a car loan or some other financial obligation can lessen financial strain and improve cashflow.
5-For peace of mind
Knowing that you’ve provided for those that depend on you can be an amazing feeling. Losing a loved one is stressful. Having financial problems due to losing that loved one is even more stressful.
Eliminating those problems now will be a weight lifted from your shoulders. You will feel less stress yourself and feel a certain peace of mind.
6- To leave an inheritance
Don’t leave your loved ones with nothing when you leave this world. Don’t make them have to start over from scratch. Give them an advantage instead of a handicap.
This is the easiest way to give the gift of legacy in terms of money.
So many of us complain about others having an unfair advantage due to inheritance. Give your children that unfair advantage!
Even if you’re single you can bless someone you care about with a small policy.
Get it done
Remember, your responsibility to your family doesn’t end when you die. Getting adequate life insurance is a way to show your family that you care.
We never know when our time will come. Get life insurance today.
(Additional resource: listen to the Todd Millionaire podcast episode 90- The Insurance Episode You Asked For)