Why It's Time To Buy Life Insurance Today
Life insurance has been around for centuries, and there’s a reason why it’s just as important today as it was hundreds of years ago — it’s a way to financially protect loved ones in the event of a death.
Whether you’re young, single and have no dependents, or you’re an empty nester, life insurance can be beneficial at every stage of life — in fact, it’s a crucial element of sound financial planning. Let’s take a look at why you should consider buying life insurance today.
6 Reasons to Buy Life Insurance
Life insurance for income replacement. If you or your spouse (or partner) were to pass away, you would lose that income, which is most likely part of your everyday budget. Having life insurance can help your family maintain their current standard of living without having to worry about that lost income.
Life insurance for debt and financial risk. A life insurance policy can help pay for debts that could be too heavy on one spouse’s or partner’s income. Having life insurance can help your loved ones pay for debts like student loans, a mortgage, credit-card debt and any other financial debt you’d leave behind.
Life insurance for final expenses. The cost of final expenses, like funeral costs, medical bills or even hospice can add up to tens of thousands of dollars. A life insurance policy can help relieve your family from the financial burden of these expenses. Learn more about how life insurance helps take care of final expenses.
Living benefits of life insurance. Most people get life insurance to help financially protect their loved ones once they’ve passed away, but a permanent life insurance policy actually offers living benefits, too — for instance, your policy has a cash value component that you can use while you’re still alive. If enough cash value has accumulated, you can take a loan* on this money to put toward things like a down payment on a home, college tuition or to pay an unexpected medical bill. Read more to learn about the living benefits of life insurance, including cash value in life insurance.
Life insurance to care for a disabled loved one. If you have a child with special needs, a spouse with a disability or parents who need to be looked after, having life insurance can give you peace of mind that they would be financially protected even if you were gone. Read more about life insurance to care for disabled loved ones.
Life insurance as financial protection for your kids. If you or your spouse were to pass away, that may mean there would only be one stream of income coming into the household — making it difficult to save for things like your kids’ college tuition or a car when they’re sixteen. Having life insurance can help pay for hefty, but often necessary, costs like these.
These are just some of the ways life insurance can benefit you and your loved ones. Check in with your American Family agent to see which life insurance coverage is right for you. In the meantime, learn more about how much life insurance you need and you can use our handy life insurance needs calculator for a quick and easy estimate.
*Disclaimer: Any loans taken from your life insurance policy will accrue interest. An outstanding loan balance (loan plus interest) will be deducted from the death benefit at the time of claim. If the loan balance grows too large for the cash value to support it, the policy could terminate.