5 Reasons You Should Buy Life Insurance
Life insurance can be a difficult topic to discuss because it’s really about planning for what will happen to your loved ones and your finances at the end of your life. We spoke with State Farm Agent Andre Hale to get an expert's input. If there’s anyone who relies on you for care or financial support, these are five reasons you should consider buying life insurance, even if you’re young:
Cover Final Expenses
Funeral costs add up surprisingly fast, and without life insurance to cover them, your family could be left with thousands of dollars in burial or cremation expenses. During such an emotional time, it can be difficult to make decisions about where to save money on a memorial service.
Provide for Your Children’s Education and Care
Life insurance can be used to cover college tuition for your children, so you can have peace of mind that they’ll have the financial means to get a quality education. If you have young children, it’s also important to think about how daycare costs will be covered if your income is lost. And although stay-at-home-parents don’t have an income to replace, the surviving parent will need to hire someone to provide childcare while he or she works.
Replace Your Income or Family Contribution
In a two-income household, losing one income would result in some significant lifestyle changes. What kinds of financial adjustments would your family have to make if something happened to you or your spouse? If you have children, there are expenses for their care and activities, but help may also need to be hired for household chores and transporting children to and from school, lessons and sporting events.
Pay Off Debts
Even if you don’t have children, life insurance can pay off your mortgage in the event of your death so your spouse won’t be forced to sell the home because he or she can’t afford it. If you have other loans or debts, those could be taken care of too, so your loved ones don’t have the added stress of paying them off.
Take Care of Estate Taxes
This isn’t as much of an issue for those with smaller estates, but if you have a lot of property and investments, your beneficiaries (the people who inherit money or other assets from you) could be left with a big estate tax. Life insurance can take care of that burden so they don’t have to.
Sometimes, life insurance is sold as a financial investment tool that can help you earn money for the future, but it’s really like any other insurance – a risk-management tool that gives you peace of mind that your loved ones will be taken care of if the unexpected happens.
If you’d like to explore the different types of insurance policies, called term or whole (permanent) life, and how much coverage you need right now, contact the Andre Hale State Farm Agency at 316-684-5656.