There are many reasons why anyone should seriously consider the importance of a life insurance policy. This is due to the fact that they may change the life of you and your immediate family for a long period of time with proper insurance planning.
1. As a substitute for income
In the event of your death, your family will lose their financial support especially if you are the biggest earner of the family. When you die, you lose wages as well as the retirement savings contributions you would receive. The life insurance role here acts as an income substitute which makes your family move on with their life without any financial stress.
2- Pay off your mortgage and debt
Life insurance can be applied to pay off mortgages, credit card debt, or any other types of debt, which will definitely become a burden on your family if you don’t have a plan to settle it after you are gone.
3. Children’s education fees
If you have children who will be attending college in the next 10 to 20 years, planning how to take advantage of life insurance coverage for part, or all of, your children’s educational needs is essential. Keep in mind that education is extremely important to anyone in this community. It’s the last thing you should help your kids with if you still can.
4. Emergency Fund
Emergencies include health and medical expenses, layoffs, and cutting back on unplanned expenses. Life insurance is definitely a great lifesaver here in times of emergency and critical situations
5. Charitable giving
If you don’t have any family or any debt obligation, you can always use your permanent life insurance to get some great means for you like charitable giving. Select the charitable organizations to which you would like to make contributions and designate them as your beneficiaries.
6. Final Expense for Yourself
These can be the final expenses to be taken care of even after you are gone from this world. Such as funeral fees and burial arrangements, medical bills or major nursing home bills for the last 2-3 months of your life if you are dying of a serious illness. Life insurance is a good candidate for these unexpected bills.
Whatever your main goals for the life insurance plans you currently have, we are sure that they will provide you with the financial security and peace of mind you have been looking forward to. Thus, make sure you evaluate your insurance policy seriously and make sure that it is sufficient to cover what you need.