Choosing a life insurance policy is arguably one of the most important financial decisions you will ever make in your life. It’s a unique and difficult decision as it ultimately doesn’t benefit you, it benefits your loved ones that you leave behind in the event of a premature death. It can be jarring to wrap your head around it but it is detrimental that you do.
Here are 3 reasons why it is important to buy life insurance:
Life insurance is about taking care of your family and loved ones.
Life insurance is about them – about your family and loved ones that you are leaving behind. If you own life insurance or are looking into purchasing life insurance you are doing it out of love and responsibility for your family. You are seeing it through their eyes and protecting them from a potentially devastating financial crisis that could result in your premature passing.
Life insurance will take financial stress out of the equation.
In the event of your death, your policy will provide a specified amount of money to your family, at a time in their life where it will be needed the most. Your family will be assured that this amount will be there almost immediately and as it is a death benefit, it should generally not be subject to federal income tax. Life insurance insures financial peace of mind.
Life insurance creates options.
Unfortunately too often families are faced with extreme financial hardships when an income earner dies and are thus forced to make quick and tough decisions. Furthermore, they are faced with this situation at a time when they may not be functioning properly or emotionally equipped to make good decisions. Having a life insurance policy takes the financial stress away and gives your family time to grieve and cope before taking on important life decisions.