Many people pass over the thought of thinking they need life insurance. Often times we hope and plan that nothing bad will ever happen to us. You may think you have a pretty firm grip of control in your life, but there may be factors you are overlooking as you may be convinced that you have good personal control of your life, you can’t always account for unexpected external factors that can happen to you that aren’t in your control. We can’t always control what happens to our health circumstances in life either; even if you lead a healthy lifestyle; which is why you may need to take a second look at the benefits of obtaining life insurance. Here are 5 serious reasons you should consider that you may need life insurance.
1. Life is Unpredictable
You can’t control everything in life. Anything can happen at any time.
You never know when you could lose your life to an accident, an illness, or when exactly you will die of natural causes. This can be especially true if you’re aware that you’re in high-risk situations like, working in a dangerous environment, or you do more driving than the average person.
Life insurance gives you the secure thinking of knowing you have a “just in case” plan for the ones you love if anything should happen to you.
Actually, life insurance isn’t about you; it’s about preventing putting your loved ones in a financial crisis in case you have an untimely death. Life insurance also considers allowing your loved ones to grieve properly without adding financial inconvenience and worry of final or future expenses on top of their grievance.
2. People Financially Depend on You
If there are people that financially depend on your income, you’ll want to make sure they can survive adequately after you’re gone.
There are many types of people that can suffer if your income stops. Depending on your relationships, there is a life insurance answer to help with any given situation.
Dependants that can benefit from your life insurance include Your spouse, children, grandchildren, elderly parents, your business partner, and especially loved ones with disabilities who need special care. You actually don’t only need life insurance if you have dependents. In fact, you can be independent, and your life insurance can be served as a plentiful contribution to a charity foundation.
There are many Financial Hardships we often don’t think about in case of an untimely death.
Types of Financial hardships you could be inflicting:
Housing: If you don’t own your home, you could be passing your hefty mortgage or rent to a loved one. If you do own your home, your loved ones still have to pay property taxes, estate taxes, and of course bills in either case.
Student Loans: If you went to school and there are still payments to be made, and you can’t fulfill those obligations, they will be passed to your next of kin for required payment.
Business Expenses: If you have a business partner, and you suddenly pass without life insurance, your business partner would be left with all remaining costs along with their own.
Burial Costs: The average funeral costs anywhere between $7,000 and $10,000. Burial costs are seldom thought about before death, and often cause loved ones severe hardship.
Debt: Any other debt left behind such as car payments, will be expected by loved ones to be paid.
3. You Want to take Personal Responsibility of Yourself
Responsibility doesn’t end after death.
Planning for the unthinkable, and not passing your financial responsibilities to your dependants is the responsible adult thing to do. If you don’t take responsibility for your unexpected financial obligations, someone else will have to foot that bill.
If you don’t acquire life insurance, you can cause other unexpected sufferings
Further unexpected costs:
Travel Expenses: Perhaps your body will need to be moved, and your loved ones will have to have immediate funds available for the moving costs.
Travel expenses can also be expected from all family members or anyone who wants to attend your funeral, as often times you are not located in the same locations. Family sometimes has to purchase plane tickets, pay for gas expenses, and possible hotel stays in order to attend the funeral.
Lost Wages: People you love could suffer lost wages as they take off work to attend the funeral or need time to grieve. This can be anywhere from days to weeks, to months.
Emotional Support: It may be that your loved ones may need to hire professional support to help them deal with the grief that could cost them up to $100 an hour.
If Your Dependants can’t Foot the Bill to Bury You
Sometimes dependants have to go to last minute, desperate measures in order to bury you respectfully.
Loans: Sometimes someone has to take out a loan. Upon the loan, they are also paying interest incurred. If they can’t keep up the payments on the loan, it could damage their credit.
Surrender the Remains: If they can’t get a loan, they may have to surrender your remains to the government coroners office and have them resume responsibility. If given to the government, the dependants can sometimes obtain the ashes for a fee, but other times, requesting ashes isn’t possible, and your remains are put in a common grave.
Payment Plan: Sometimes, dependants may have to ask the funeral home for a payment plan to cover costs.
GoFundMe: And lastly, Some dependants may have to rely solely on the charity of a GoFundMe account for help paying for costs.
Deciding to have life insurance can have many personal benefits to you even as you are still living.
Some benefits include:
- It can improve your credit
- It’s an asset that can help you get health insurance
- It can help you qualify for loans
- You can count on it as it can withstand bankruptcy
- You won’t have to live in fear
Contrary to popular belief, life insurance is actually also pretty affordable. If you don’t smoke or have a pre-existing condition, it can cost only as a little as $1 a day.
4. You want Success and Security after you’re Gone
Upon the personal benefits you can acquire from obtaining life insurance, there are also extremely good benefits that can apply to your loved ones if finances are taken care of.
These benefits include:
College: You dependants can use that money to help pay for college
Inheritance: You can use that money to pass to your dependents as their inheritance from you.
Stability: If you have a loved one that isn’t financially responsible, you can set up a beneficiary with installments of steady income instead of a one lump sum payout, ensuring their monthly living expenses. This is a great option as well for dependants that have disabilities, as they may need special long term care for their daily or monthly living expenses and care.
Income replacement: If you’re married, and your spouse relies on your half of the income, you can also take advantage of the installment payout here, as their lives are able to proceed as usual. This is also a benefit situation that your business partner can rely on.
5. Death is Inevitable
Since you know death is inevitable, it’s financially smart to begin planning for it.
The Earlier you realize you need a plan for when you’re gone, and still a younger age, the cheaper your life insurance premiums will be. Also the earlier you start, the longer you are protecting your loved ones from the unthinkable happening.
Facing your death now can help you plan for the future accordingly. This will ensure the safety and well being for as many loved ones as possible, with as many benefits as possible.