Life insurance is one of those things that just about everyone needs but far too few people actually have. It’s easy to put off purchasing a policy when you’re young and relatively healthy. But the longer you wait, the greater the chances of something happening before you are able to purchase coverage. Maybe buying life insurance has been on your to-do list for a while but you haven’t gotten around to it yet. Check out these 10 reasons why you can’t afford to wait any longer.

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1. Replace Lost Income

Life insurance works to provide financial security to your loved ones after you pass away. You have to consider what would happen if you were to die suddenly. This is especially true if your loved ones rely solely on your income. Get yourself adequate coverage. That way, you won’t leave your loved ones helpless when the monthly bills come around.  This is not only true during your working years, but also in retirement.  If you or a spouse will be drawing pension income in retirement, life insurance might be a more affordable option than pension survivorship benefit selections.

2. Cover Burial Expenses

Sadly, even a basic funeral service can run upwards of several thousand dollars. While it’s possible to pre-pay for your funeral, people don’t often think that far ahead. Pre-payment can ensure everything is in place for your loved ones after you die. However, there are risks to pre-payment. Life insurance can give you and your beneficiaries more of a guarantee, lifting a burden off of them as well as yourself.

3. Pay Off Debt

Just because you die doesn’t necessarily mean your debts will disappear. In the instance that you and your spouse have co-signed for a mortgage or other loans, your spouse may become entirely responsible for repayment. The other outcome could result in creditors trying to collect from your estate. While that gets rid of your debts, your heirs will receive the depleted remainder. Life insurance allows those you leave behind to take care of any lingering financial responsibilities.

4. College Planning

There are a number of ways to save money for your child’s education. You may not have thought that a life insurance policy would be a viable option. But insurance payouts can actually provide a good supplement  to your savings. If your child ends up borrowing money to get through school, the insurance proceeds could also help wipe out student loans.  

5. Build Cash Value

Term life insurance, a type of life insurance, stays in place for a set period of time. But another option, whole life insurance and universal life, provide permanent coverage that only ends if you cancel the policy. Whole life and universal life insurance allow you to build up cash value over time, an attractive prospect to any people. That cash value acts as an extra cushion that you can tap at any time. This may come in handy if you have a financial emergency down the road.

6. Diversify Investments

Some people also use life insurance as an investment tool with universal life policies. These policies are tied to a specific investment product or market index. Then policyholders receive interest credits based on the product’s performance. Before you dive into this type of insurance, you’ll want to read the fine print and consider both the guaranteed and non-guaranteed benefits.

7. Business Planning

If you own a business, it’s vital that you have life insurance. This covers your obligations so your hard work doesn’t go to waste. Are you involved in a partnership with someone else? You should both have coverage. That way, if one of you dies, the other isn’t left holding the heavy financial bag.  Also, businesses that have key personnel should consider insuring for death or disability should that key person not be able to participate in the business.

8. Estate Taxes

When someone passes away, their heirs could face estate and inheritance taxes on any assets they receive. If you’re worried about your loved ones getting hit with a big tax bill, a life insurance policy can help cover these added costs.  This is especially important for larger estates.

9. Coverage is Affordable

One of the excuses people tend to make for not buying life insurance is the cost. But truthfully, coverage often ends up pretty affordable for most people. Term life tends to be less expensive than whole or universal life. Plus, the younger and healthier you are, the lower your premiums will be. Unless you smoke or have a pre-existing health condition, you could find coverage for as little as $1 a day. Compare policies now to see your affordable options.

10. Peace of Mind

No one can truly predict the future. But having life insurance means you and your loved ones can prepare for any eventuality. Even with a small policy, you may find yourself sleeping a little easier at night knowing that your family has protection in place should something happen to you.