5 Reasons to Get Life Insurance

Life insurance is so much more than ensuring there is money for your family and loved ones when you pass away.

A life insurance policy can also provide you with a sound financial foundation when it comes to addressing life events that require a financial investment such as buying a new home or sending your kid to college.

You may be at the point in your life where insurance seems like an unnecessary expense. However, life insurance policies can be simple and affordable and can provide peace of mind that your family is protected should the unthinkable occur.

Apart from providing your loved ones with financial protection, there are other reasons why you should consider getting life insurance – no matter at what stage of your life you are at.

Keep reading to learn the benefits of life insurance:

1. Life Insurance Can Cover Expenses and Debt

No one wants to think about their death, but the reality is that funerals are not cheap. In fact, a basic funeral service can cost several thousand dollars.

You can pre-pay for a funeral but that is a huge financial investment to make ahead of time. 

Having a life insurance policy means that your funeral costs are covered and that the financial burden does not rest on your family and loved ones.

Your life insurance policy can also help cover any debts you leave behind without creditors trying to collect from your estate.

This will protect any partners or family members with whom you share any debts and ensure that your beneficiaries receive any inheritance specified in your will.

2. It Can Protect Your Family

Nowadays, it generally takes two incomes to maintain a household. Without your income, it may be difficult for your family to continue with payments such as a mortgage, childcare, bills, college tuition, etc.

A life insurance policy will help prevent the negative impact the loss of your income will have on your family.

It will give your partner, children, etc. peace of mind knowing that they can continue to live their lives as normal as possible after your passing.

3. It Can Help You Send Your Child to College

Parents congratulate the student, who finish their studies at the university.

Life insurance policies are not all about helping your loved ones in the event of your death! Having a life insurance policy can help you send your child to college.

You can do this by having a cash value policy such as a whole life insurance policy or universal insurance policy (as opposed to term life insurance). You can use the cash from these policies to pay for college tuition.

The cash value of a whole life insurance policy increases over time and you can withdraw that cash for educational expenses – as well as emergencies and other financial needs.

It’s like a loan but you are borrowing from yourself and you can take your time to repay into your insurance policy.

4. Life Insurance Can Supplement Your Retirement Savings

Just as you can use your life insurance policy to pay for your child’s college tuition, you can also use it to supplement your retirement savings.

Again, whole life insurance plans build up cash value over time and you can tap into that to boost your income during your retirement.

When you borrow from your life insurance policy, you technically are not required to re-pay it – but it will accrue interest and the amount owing will be deducted from the death benefit.

5. Life Insurance is Affordable

For all of the benefits, you can take advantage of when it comes to having life insurance, the actual cost is relatively low.

Overall, coverage is quite affordable for most individuals and, with different life insurance products available, it’s easy to include one in your household budget.

Plus, when you are young and healthy, premiums are lower. Life insurance does get more expensive as you age.

Life Insurance – Sooner Rather Than Later

Here at Capital Insurance Brokers, we recommend that you consider a life insurance policy sooner rather than later.

Not only can you enjoy the lower premium costs but you can also take advantage of the benefits of a cash value policy throughout your lifetime.

However, the main benefit of having a life insurance policy is knowing that your loved ones will be taken care of in the event of your passing.

Capital Insurance Brokers is dedicated to protecting you and your family from the financial impacts of life – both expected and unexpected. 

If you want to learn more about life insurance and the products available, feel free to reach out to one of our team members today. We look forward to providing you with insurance products to suit your unique and individual needs.