Most of need life insurance of some kind. In case of sudden death, or prolonged illness, comprehensive coverage is an enormous help. But seeing to one’s mortal remains is not the only reason people buy life insurance. Here are 5 reasons why we buy. You might find some surprises here.
1. Love Of Family
Of course, the main reasons people buy life insurance is because they care about those closest to them and don’t want to burden them with property taxes, funeral costs and, if they are the primary earner in the household, future income worries. A good, well-rounded policy will take provide enough money to cover all of these expenses with some left over after the mourning period has ended and your loved ones attempt to get on with their lives.
2. Tax Breaks
Generally speaking, death benefits are non-taxable income. Thus many shrewd businessmen and women who can’t take it with them, at least want their loved ones to get as much of their estates as they can before the government swoops down for its share. Squirrelling away as much cash as you can into your life insurance policy keeps the money in the family where it belongs.
3. Future Prosperity
There is more to just benefits to help with the cost of your funeral. These days a lot of policies offer investment plans for the money you pay into it. These funds increase over time, pay interest, and can be paid out for college tuition for any children, paying off a home mortgage, loans etc.
4. Medical Benefits
Many policies offer full medical coverage for you and your loved ones and this is sometimes a strong reason to take out a life insurance policy. Of course it’s in the best interest of the insurance provider to see that you get proper medical care, care that can keep you alive longer. If you’re alive, the insurance company doesn’t have to pay out.
5. Peace Of Mind
The person who has died is free from the worries that come after death. That’s the irony of dying. But until that fateful day, great anxiety can result from too much thinking about it and not enough planning. And so purchasing life insurance eases our minds and makes it ‘easier’ for us to shuffle off this mortal coil as we can spend the years between living dying breathing a little easier in the knowledge that we’ve taken what steps we can.
The bottom line here is that everyone needs life insurance coverage. The key is to be aware of your options and to find the policy that fits your short term and long range needs. Funeral costs are a big part of selecting your coverage but there are other factors you need to be aware of to ensure your passing does not leave those you care about besieged by costs or debt. Expenses that could cost them everything you worked so hard to build. So plan now.
