May 2nd marks the anniversary of the first-day Life Insurance became available in the United States. Known as National Life Insurance Day, this date brings awareness to the importance and the benefits of life insurance.
It generally isn’t a surprise to anyone that Life Insurance is important. Yet so many of us still choose to ignore the reality of what would happen to our loved ones if we were to die suddenly without the proper protection. It could be devastating, possibly leaving them in a place where they can no longer cover the mortgage or maybe even unable to cover your funeral costs.
If you don’t currently have a Life Insurance policy, you are not alone. According to Life Insurance Statistics and Facts, which is a report put out by the life insurance industry, about 43% of the population still don’t own a life insurance policy in any amount.
Unfortunately, the study found that most of us are in desperate need of a Life Insurance policy. Nearly 1/3 of North Americans would feel the loss of the primary earner in the household within the month.
Here are some reasons why Life Insurance is a necessity, not an option:
- Pay Off Debts: A life insurance policy can pay off any debts that you leave behind that would be a burden to your family. Debts such as a mortgage, credit cards, car loans and even your funeral expenses can have a dramatic impact on your family and their lifestyle.
- Provide for Your Kids: A life insurance policy will ensure that your children can go to college, buy a home and even pay for their wedding if you die unexpectedly.
- Peace of Mind: A term life insurance policy is an inexpensive way to give you and your family members peace of mind, knowing that they will be protected if something happens to you. You will no longer have to worry about their financial future and can rest easy knowing they will be able to continue their current lifestyle.
- Funerals Are Pricey: Even a basic funeral can cost $7,000-$10,000. A small life insurance policy will make sure your final expenses are covered so your family doesn’t have one more worry at an already stressful time.
- Supplement Your Retirement: Permanent life insurance policies accumulate a cash value over the life of the policy that can be borrowed against tax-free. These policies can be used to supplement your retirement if your other investments fall short. These policies often come with fairly high fees, so be sure to compare the costs to those of other investment vehicles.
- Protect Your Business: Regardless of whether you are using a life insurance policy to insure a key employee, fund a buy/sell agreement or simply provide a tax-free cash infusion (borrowing against the cash value of a permanent policy), life insurance can be a major asset to your business.
Life Insurance helps provide financial security for your loved ones, should you pass away unexpectedly. In addition to helping maintain your family’s standard of living and helping cover expenses, it may allow you to leave a lasting legacy by providing funding for college, weddings and other milestones in your family’s lives. This legacy can cross generations. Start protecting your loved ones today if you aren’t already.