Many people say that they don’t have a need for a life insurance policy or that it simply costs too much, or they bring up another common argument about why it’s unnecessary. The truth is, life insurance policies can be some of the most useful and beneficial investments you can make. Here are just a few reasons why:
- Even though you yourself won’t need money after you pass on, your relatives might not be able to pay for all of your last expenses. Something like a funeral can actually cost thousands upon thousands of dollars; this can be a huge burden for a family that wants to give their loved one a proper last goodbye.
- If you have children, a life insurance policy is even more essential. Young children, in particular, will have many expenses as they grow up; without you to support them financially, it might be tough for them to fulfill their dreams. Growing up without a parent is hard enough as it is, so even a small amount of financial help can be very appreciated.
- If you don’t have children, life insurance plans are still a good idea! Your spouse and anyone who is dependent on you will still benefit from having a source of income.
- A savings account is a good way to make sure that you’re comfortable during retirement, but it might not be enough to cover end-of-life expenses. Even then, if you pass along savings to your relatives, there’s no guarantee that they’ll receive all the money you hope to pass along. Life insurance payments are generally free from income taxes and can be easily allocated toward specific things like mortgage payments or college tuition.
- Last but not least, one of the biggest myths about life insurance is that it’s too expensive to be worth it. Life insurance plans are actually very affordable — in many cases you can even find a life insurance policy that’s cheaper than your health insurance policy — and the benefits far outweigh the costs in an emergency.
Now it’s time for you to decide: have you been paying enough attention to your life insurance policy?