Are you looking for ways to ensure that your loved ones are set up financially in case you pass away? Do you worry that there are expenses they’d be forced to cover without a means of financial coverage? If so, then you need to invest in life insurance.
There are some out there that wonder if they actually need life insurance at all. Since it isn’t a mandatory form of insurance (unlike home insurance or car insurance), many people don’t invest in it in an attempt to “save money”. But what if tragedy strikes?
See below for an in-depth guide on what life insurance is, why you need it, and what you should look for in a strong life insurance policy.
What Is Life Insurance?
No one wants to think about the day that they pass on. It’s the reason that some never take strides to invest in life insurance.
However, to not set up some form of life insurance would be irresponsible. You’d be placing a huge financial burden on those you care for most once you pass on.
Without the proper finances in place, your dependants would struggle to adjust to life without your current salary.
Life insurance offers you a different path. It’s a contract that you and an insurance provider strike up. You pay monthly payments towards the life insurance policy, then the provider will pay out a death benefit to those you deem as beneficiaries once you pass.
For those of you thinking “I’ll invest in it if it ever comes to that”, think again. Providers might deny coverage to those that have severe medical conditions, like diabetes, obesity, and so forth.
There are two types of life insurance that you should be aware of: term life insurance and permanent life insurance.
Term life insurance is when you pay a premium towards a life insurance policy that has a specified term on it. This could be anything from a couple of years to 30 years. The provider is only responsible for paying out a death benefit if you pass away during that window of time.
Permanent life insurance is when you’re placing premiums towards a policy that will cover the rest of your life. Under permanent life insurance, a bit of the additional payments you pay to your provider become cash value for your beneficiaries down the line.
Reasons You Need to Invest in Life Insurance
Now that you have seen what life insurance is and the different types of life insurance you should be considering, you can probably see a few reasons it could help you.
For those of you that need a bit more explanation, see below for several reasons why you should invest in a life insurance policy today.
1. You Have Dependants
If you passed away tomorrow, are your kids in good hands financially? Does your spouse have everything he or she needs to compensate for your lost income?
For those of you that don’t have a spouse or kids, you aren’t out of the woods yet either. Even if you never plan on getting married or having children, you might still have parents that will need your financial support as they age.
Point is, we all have dependants and if you don’t right now, you will someday. It’s best to be advantageous and invest in a life insurance policy now. You can invest in a whole life insurance policy and start working towards that additional cash value.
2. You Enjoy a Risky Life
There’s nothing wrong with being a bit of a daredevil if that’s your definition of living life to the fullest. Just know, that comes with the added risk of passing away earlier than the average human being.
For example, some of you enjoy extreme hobbies such as riding a motorcycle, drag racing, ziplining, etc.
It’s best to have a life insurance policy in place just in case things go south. That way, your tragic passing doesn’t blindside your family financially. They’d have enough stress in that situation as is.
Be sure to reach out to Paradigm Life to learn about the best term life insurance policies for any budget. You can get the coverage you need without adding any stress to your finances.
3. You Have Loans You’re Paying Off
Debt can be one of the biggest financial hurdles in life. You might have things such as student loans, credit card debts, medical debts, mortgages, car payments, and so on.
Not all of that will vanish once you’ve passed away. If you have a co-signer on any of your loans, they might be the ones held financially liable if you pass on.
For that reason, we recommend that you factor in that debt when you go to invest in a life insurance policy. Not sure how much you’ll need? Your provider can help you navigate those waters.
If you have the right life insurance amount in place, they can cover the debt you accrued and give your loved ones one less hurdle.
Invest in Life Insurance for Your Dependants Today
Now that you have seen an in-depth guide on what life insurance is and why you need to invest in it, be sure to use this information to your advantage.
Start by finding the right provider to work with. A reputable life insurance provider will work with you to find the best policy to fit your coverage needs, while also providing rates that fit with your budget.
Be sure to browse our website for more articles on life insurance, as well as many other topics that you will find helpful.