There’s an ongoing debate in the world of finance whether life insurance is necessary or not. However, if you assess the factors, you can easily conclude that there are multiple reasons why it’s vital to buy a life insurance policy.
Having life insurance means you opt to protect and safeguard the future of your beneficiaries. It is a highly debatable topic, but most of the points against it are based purely on misconceptions. For example, some people claim that when you’re not likely to leave unpaid debts or other financial obligations upon your death, the life insurance payout won’t be needed. Still, there are plenty of other ways your death can cause your loved ones to suffer financially, such as loss of income (if they are dependent on you for monetary provision) and unplanned expenses for final medical care and burial.
Moreover, if you live in Utah, there are plenty of reputable life insurance providers in Sandy, Salt Lake City, and Provo. All you need is to find one who can explain it to you properly.
With that, we compiled several substantial reasons why life insurance is a necessary step for future financial security.
Begin Early for Better Perks
A lot of people assert that having life insurance is only necessary when you’re approaching retirement age or already have a spouse and children. Paying for premiums can also take a toll on your finances, and they could have gone to savings accounts instead during your younger years. However, we all know that life is unpredictable. Of course, it’s uncomfortable and daunting to think about death, but no one really has a clear idea of when it will happen to them. Thus, age is not a guaranteed factor in protecting you against untimely demise.
Like other types of insurance, it’s more beneficial to start young with life insurance. Familiar with the saying “the early bird catches the worm”? This famous proverb applies in life insurance because if you start young, chances of getting better policies which more coverage such as disability or accident benefits will improve. As people grow old, the chances of not being qualified for acquiring insurance may increase, especially when strict medical requirements are involved.
Security and Assurance
Life insurance keeps your beneficiaries financially protected upon your death. Thus, they won’t have to be troubled with hefty burial expenses, unpaid mortgages, and other costs, which can aggravate the grief and mental burden caused by your demise. In addition, if you’re financially savvy and unlikely to leave ongoing obligations, then your family and loved ones can use the payout for other ventures, such as starting a business, buying property, or going on a trip. Isn’t that a valuable gift to leave behind?
Tax-free Policy Loans and Emergency Funding
Think of your insurance as emergency money. Yes, it’s not exactly a savings account, but depending on your specific insurance policy, there are certain portions that can be withdrawn entirely tax-free as policy loans. You can use these for unexpected medical costs or other pursuits that apply.
Accordingly, it’s important to be cautious and diligent when reading the terms and conditions of your insurance contract. Ask questions to the insurance agent and consult a professional before withdrawing money, as taking out too much can cause your policy to lapse. As for the living benefit riders, these may come with additional fees or require medical proof when they will be used for financing healthcare.
Life insurance is indeed essential, so if you still don’t have a policy, it’s best to purchase life insurance as soon as you can. Do your research and evaluate some well-reviewed companies.