Whether or not life insurance is something you decide to add to your financial plan will largely depend on your current financial and personal situation. And while it may be hard to imagine anything going wrong while we’re fit and healthy, it’s still important to think about what would happen if you were unable to earn a living. How would those who rely on you survive financially? In this article, we’ll look at 5 reasons why we believe life insurance is worth the cost.
1. Provide an income
If you have a family who depend on you for financial support, then life insurance is a good idea. Life insurance would replace your income and ensure your family is able to sustain their standard of living if they no longer have access to an income provided by you. Day to day household expenses, the mortgage or rent, education and other costs would effectively be taken care of, and a life insurance policy would ultimately provide some measure of security for the family needs.
2. Leave an inheritance
Even without any major assets to pass on to your loved ones – such as a house, a car or a significant savings account – buying a life insurance policy to bequest to your heirs would help set them up financially and provide for their monetary needs in the years ahead. If you have children, a life insurance policy could help cover their future education costs or help finance a car or a business venture.
3. Pay off your debts
As well as providing an income for the everyday cost of living for your family, a payout from a life insurance policy could be used to clear any outstanding debt – for example, a mortgage, credit cards or car finance. Expenses like funeral costs or medical bills can easily run into thousands of dollars. By providing a life insurance policy to pay for these costs, your family and loved ones don’t have to face the financial burden of repaying any outstanding debt.
4. Add financial security
Most parents want to know that their children will be well taken care of should the worst happen. And that means ensuring that any children are financially set up for a successful future. That may be by providing the means to get a quality education, pay for a future wedding, or contribute financially towards a business venture. A life insurance policy could do all of this and provide added financial security for your loved ones.
5. Bring peace of mind
It’s hard to imagine how the future will look, but our lives can change in an instant. Life insurance offers some protection for the uncertainties in life. With that it brings a measure of peace of mind for those left behind, knowing they’ll be taken care of financially. It can help them through a difficult time of loss.
If you’re considering adding life insurance to your financial portfolio, or you’d like to speak to someone about your existing life insurance coverage, or if you have questions about the right life insurance policy for your needs, please get in touch with a Mortgage Express branded insurance adviser today.