Purchasing life insurance, particularly when you are young, can feel like a waste of money. However, if you have a family, having life insurance is an important way to protect your loved ones in case the unthinkable happens.
Here are five reasons why you should consider life insurance right now.
1.) It can pay for funeral expenses.
If you should pass on, the last thing you want your family to worry about during an emotional time is having to come up with the money to pay for your funeral expenses, which can be anywhere from $7,000 to $10,000. Life insurance can go towards paying for arrangements, burial and service.
2.) It can pay off debt.
When you pass away, your debt doesn’t pass away with you. Your estate is responsible for paying off your debts, which means money you set aside for loved ones may now go towards your debts. Life insurance is an excellent way to ensure that assets for your family won’t be touched. Your plan can be used towards your debts instead.
3.) It can replace income.
It can be challenging for a family when two incomes suddenly become one. Depending on the plan you get, your life insurance can replace your income for years. The general rule is to get plan that is worth ten times your income plus $100,000 per child. Here is a helpful breakdown from Nerd Wallet.
4.) It can pay for your business.
If you are a business owner, life insurance can help if your family is unable to take on your role as partner after your death OR help your business partner(s) if they’re unable to immediately buy out your share.
5.) It’s not that expensive.
You may think life insurance is cost prohibitive, but it really isn’t. For example, here are the costs of the life insurance plans we offer at KindHealth. These prices are for a 32-year-old non-smoking woman living in Austin, TX.