October is Life Insurance Awareness month and a great time for all of us, young and old, to approach this important, but tough to talk about, issue. Life insurance is difficult for many of us to think about because no one wants to think about dying. We do not want to consider what will happen to our families after we are gone because it’s a painful thought to have. However, the truth of the matter is, we will all die someday and the worst thing you can do is not have a plan in place to care for those you love and carry on your legacy as you see fit. Though there are many reasons why each and every one of us should have a life insurance policy, here are five of the most important reasons that are applicable to almost everyone.
- Life is Uncertain
It’s a fact of life that you just never know how long you have on this earth. An accident, unexpected illness or other tragedy can occur at any time and at any age. Whether your family consists of a spouse and children, grandchildren or you’re just starting out and your family is your parents, you need to make sure they are taken care of if you should pass. This could include the mortgage and bills for your spouse or it could mean college loan repayments for your parents. Nothing will be able to help them with the pain of losing you, but you can make sure they don’t have the stress of money issues added to it.
- You Have a Business That Needs Taken Care Of
If you are an owner or part owner of a business, life insurance can help protect it from financial loss, liabilities or instability in the case of your death. This may come in the form of providing necessary short-term cash or keeping operations going until things settle and proper arrangements can be made. You worked hard to build your business and it will give you great peace of mind to know it can continue in the event of your early death.
- Now is the Least Expensive Time to Get It
No matter what your age is, NOW is the least expensive time to get life insurance as the cost will only continue to go up as you get older. In addition, if you develop some type of disease or other condition, you may become insuperable and not even be able to qualify for a policy. Now is the best time to look into policies with your financial planner before it’s too late.
- Funerals Are Expensive
Even if you don’t have any other debt or expenses that your family will need to cover in the event of your death, a funeral will need to be planned and those are plenty expensive on their own. Even a simple service can cost upwards of $7,000—cash that most people don’t have just lying around. Don’t increase the stress of your loved ones during a difficult time by leaving them funeral costs to deal with. Even a small life insurance policy will ensure your family can take the time they need to grieve instead of worrying about how to pay for your funeral.
- They Make Financial Sense
Life insurance policies can also be used as an investment, depending on the type you secure. An annuity is like a pension plan you put in place yourself. You put an amount of money into a life insurance product and in return your get a guaranteed stream of income month after month when you retire. Life insurance policies can also help increase your credit and many have cash value that cannot be touched by creditors, even in the case of a bankruptcy. In addition to the money you know your family will get in the case of your early demise, these policies can also add value to you and your family’s lives while you are still living. There is really no reason NOT to have some type of life insurance policy. Even if one is offered to you through your place of employment, you should still look into an independent policy as many work policies may be affected if you switch jobs. During October, let’s all take a closer look at this important piece of financial security and visit with our financial planners about the best options.