Why Life Insurance is so Important

Life insurance is one of those things you hear about so much through life but can be riddled with rumors, horror stories, and tons of confusion. With almost half of Americans not having life insurance, it’s no wonder that many people are unsure about its benefits and whether it’s truly necessary.


The reason life insurance is so important is because it provides your family, loved ones, business partners, and any other dependents financial protection in case of an accident. Many of the horror stories people hear happen because people don’t have life insurance. Further, the main reason people don’t have life insurance is that they believe life insurance is extremely expensive, when in fact, the average life insurance policy only costs $27/month.


While I’m not a life insurance agent myself, working in the industry for several I’ve learned why life insurance policies are so important. With so much confusion out there, here are 10 different reasons why life insurance is so important to have regardless of your financial situation, age, and marital status.


1. Pay bills

One of the biggest benefits life insurance can have is that coverage can provide families and dependents money to cover daily living expenses like utilities, car payments, and groceries. Life insurance offers families access to money quickly rather than waiting for the estate to settle or forcing you to quickly sell possessions to replace income.


2. Save the family home

The largest expense people are often left with after a family member passes is the mortgage payment. With the average mortgage being $1,100, this can become a major burden on families who don’t have the supplemental income life insurance can offer.


3. Pay for your child’s education

With the importance of a college education on the rise, many families’ financial plans include the cost of a college education. In the case of an accident, your children’s education outlooks could be dimmed without the income you provide. Fortunately, life insurance plans can payout for years to help cover these costs even after you’re gone.


4. Protect your business

Almost half of the employees in America work for small businesses. If you’re a small business owner, life insurance can help keep your business afloat and protect your employees and business partners during unforeseen circumstances.


5. Secure your retirement

Life insurance is a great investment tool for people during retirement. People can access funds from their life insurance policy early on in many circumstances to make retirement more comfortable.


6. Leave an inheritance

Leaving money behind after you’re gone can be complicated, especially when taxes get involved. The only way to maximize the amount of money left behind to loved ones or a charity is to have a life insurance policy.


7. Cover end-of-life expenses

The average funeral in America can cost more than $9,000 and become a financial burden on those you leave behind. By getting a life insurance policy, you can provide financial support to make the process easier.


8. Ease the burden on loved ones

Losing a loved one is often some of the most difficult times in a person’s life. Unfortunately, with all the related costs, this emotional hardship can become a financial burden. With life insurance, you can make a difficult time easier to handle.


9. Provide a source of cash throughout your lifetime

With permanent life insurance plans, policyholders can use their life insurance as collateral for a loan. This can help you achieve large and small financial goals within your lifetime.


10. Give your family control of their financial future

The main thing life insurance does is that it provides your family, loved ones, and dependents options after you’ve passed. Leaving your estate behind can become a costly endeavor that takes place during an emotionally difficult time. Through life insurance, you can maximize the payouts made to your beneficiaries and protect them from financial hardships.


Get a Life Insurance Policy Today!

If you have any questions about what life insurance policy makes the most sense for you, reach out and we can connect you to a network of experienced and trusted life insurance agents. Life insurance should be easy to understand and accessible to everyone, so let us know how we can help