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While working as a mortician for over a decade, I wasconstantly surprised by the number of people I dealt with who failed to prepare with lifeinsurance. I never didany official tracking, but I’d say that over 50% of the families that I served had no coverage. Honestly, I thought that wascrazy!
Here’s the deal: Life insurance, especially for young people, is ridonkulously cheap – especially when you use websites like SelectQuote to compare costs!And, with many funerals costing upwards of ten grand, going without life insurance is reallya disservice to your family.
Unfortunately, the costs of dying don’t stop at the funeral!There are plenty of good reasons to jump on the life insurance bandwagon, some of which we rarely think about. Here are a few things life insurance can do for your family in your absence.
3 Reasons to Buy Life Insurance Besides a Funeral
Pay Off Debt
Imagine this: You’redriving home after a long day at work, looking forward to a great weekend of maxin’ and relaxin’ with the fam. Unfortunately, your Ford Focus gets t-boned… and you don’t make it. Oh, and you didn’t have any life insurance. After the shock and pain wears off for your family, they’re still going tofind a mortgage bill in their mailbox on the first of the month. How willthey pay that? Notnot only do they face the loss of their husband and father, they may lose their home as well.
Replace Your Income
If you’re a working adult, and we hope that you are, your family countson you to make money. But they don’t just count on your income now. They’re also assuming that you’ll be around to payexpenses for the foreseeable future. In addition to keeping the lights on and the cupboards full, your family needs your income to live the lifestyle they are used to living. It’s easy to protect that lifestyle with a simple term life insurance policy.
Even if you aren’t the bread winner, life insurance coverage on yourself can help reduce the financial burdens on your loved ones. After a death, going back to work can seem nearly impossible. Having even a small policy can ease that financial stress, allowing your loved onesthe time they need to grieve before dashing back to work.
Pay for Future Dreams and Goals
Most of us have goals and dreams for our thefuture. If we’re smart, we’resaving for those dreams already. Whether it’spaying for weddings, college, retiring early, or traveling the world, wouldn’t it be nice to know that your family could still reach those goalseven if you died? Having enough life insurance can ensureyour family is able to achieve and experience all of the dreams that you had planned for them, even after you are gone.
What Type of Life Insurance Should You Buy?
There are two basic types of life insurance – term life insuranceand permanent life insurance. Essentially, term life is insurance that remainsin effectfor a stated period of time (as long as you pay your premiums) and ceases to exist once that term has expired. For example, you may buy a 20-year term policy which staysin effect for 20 years. If you passed away after the term period, no death benefit would be available.
Permanent insurance, on the other hand,is life insurance which stays in effect until you either stop paying the premiums or you die. Permanent insurance includeswhole life, universal life, and other products. These policies typicallyaccrue a “cash value” over time, and you can cash out if so desired.
So, what is better? In my opinion, it’s not even a contest. For the vast majority of people, term insurance winsevery time. Term insurance is affordable, protects your family while they are young, and expires about the time you should be considering other insurance alternatives (like long-term care). Permanent insurance isoutrageously expensive, pays huge commissions to the agent, and is just a bad all-around deal for most consumers. And, if you’re worried about cash value, don’t be. You can save money in a bank account instead.
Buying Life Insurance – A No-Brainer
Of course, there are no guarantees of coverage and term insurance isn’t right for everyone. Be sure to consider all options and contact an agent you trust before making a final decision.
However, if you’d like to shop some different rates, check out SelectQuote.com. After being in business for over 30 years, SelectQuote excels at finding the lowest cost term life options to meet your needs. Quotes are free, and the process takes just 10 minutes or so. Once the process is complete, a SelectQuote advisor will help you compare the best options from the best life insurance companies for your particular situation. The best part is that you can complete the initial interview with a call or online!
Although SelectQuote specializes in term life, that’s not all they offer. You can also use them for quotes on auto, home, and senior care coverage. Just follow the link above for details.
Do you have life insurance? What type of coverage do you carry? Let us know below!
