The short answer is yes – life insurance is worth it. There are many benefits and important reasons why you may need life insurance. Consider the stage of life you’re in and your financial situation. If you were to pass away, how would it affect your loved ones? Life insurance can give you control over your finances, as well as the peace of mind that your loved ones will be financially protected now and into the future.
Key Reasons Why You May Need Life Insurance
There are a couple of key reasons why you may need life insurance:
Is Anyone Relying on You Financially?
An important motivation for purchasing life insurance is to secure the financial future of your loved ones. If you have dependents such as a spouse, children, or aging parents, they may rely on your income. Consider how your loved ones would need to dramatically change their lifestyles if your income was no longer available. How would they pay the bills? Would they need to move? Planning for the future will give you peace of mind and confidence knowing that they are protected.
Do You Have Debts/Expenses That Need to Be Covered?
Another key reason why you may need life insurance is to cover large debts, expenses, or to have your wishes fulfilled. If any large debts or expenses such as mortgage payments, credit card balance, or funeral expenses remain, then your loved ones will have to foot the bill.
You may also want your life insurance benefit to cover another worthy cause, such as your children or grandchildren’s post-secondary education or leave a charitable donation to an organization close to your heart.
Key life stages where life insurance can help:
While life insurance may not be top of mind for a millennial, should you choose not to purchase it, you may be missing out on an important component of financial planning. Young people can take advantage of lower premiums since the younger and healthier you are, the lower your premiums will be.
Additionally, remember that life insurance providers take your family health history into consideration when determining your premiums, since some health conditions are hereditary. When you secure coverage earlier in life, your immediate family members are also younger and more likely to be in good health. This means your premiums may not be affected by ageing family members.
Life insurance also acts as an investment opportunity, offering cash value if you have a permanent life insurance policy.
At this stage of life, it is likely that you have purchased a home and have been making mortgage payments. A life insurance policy can protect your spouse from covering large debts, such as a mortgage.
If your children are young and dependent upon your income, life insurance can provide financial protection to ensure their lifestyle is not adversely impacted. Should they be starting post-secondary education, a life insurance plan can help cover tuition expenses.
You’ve worked hard your whole life; retirement is your time to enjoy the fruits of your labour and the opportunity to finally put your feet up! Life insurance can give you the peace of mind you need to ensure your loved ones don’t foot the bill for any outstanding expenses or debts.
Lingering mortgage payments and final expenses that may be left behind for your spouse or children to cover are important to consider during this life stage. Your grandchildren and their needs may also be another consideration for financial protection.
Types of Life Insurance
Permanent life insurance provides permanent protection, which means coverage for life. Meanwhile, term life insurance provides protection for the duration of a term, typically 10 years, 20 years, 25 years, or any other period that is defined in the policy.
You can choose between traditional and no medical life insurance. Traditional life insurance involves tedious medical exams and tests. The application process can be lengthy, and your policy may not be issued for weeks. On the other hand, no medical life insurance doesn’t require needles or medical exams. Furthermore, you don’t have to wait long to know that you and your loved ones are protected, well into the future.
Life insurance is a worthwhile investment for people at every stage of life! Consider your financial situation and your loved ones that may need protection. Having the peace of mind that you have secured their financial future is invaluable.