I know what you are thinking ‘how do you expect us to buy life insurance policies when we have student loans to pay for, not to mention the fact that some of us lack health insurance and the rest don’t have savings in retirement accounts,’ right? Well, here’s the bitter truth, getting life insurance is a necessity, and you have to figure out better ways to save. When in good health and starting to rise in your career, you might think that it makes no sense to invest in your future because nothing can go wrong but the truth is that everything can go wrong and downhill in an instant.
What if you are enjoying life insurance from your employer’s group cover? Is that enough? Unfortunately, it isn’t.
Here are the reasons why you should buy life insurance
- The group insurance by your employer is not enough
Often, the group life insurance policies offered by employers are skimpy, and if you lose your job, the money saved will only replace your income for a very limited time. The amount is too little to pay off your mortgage or take your kids through school. So, you need something better.
- You could lose it all (when you depend on your employer)
Besides paying the bare minimum, you might lose it all if you lose your job or when you leave. So, for your security, continuity, and peace of mind, you should think about buying an individual life insurance plan.
- It is cheaper now
As you grow older, you get predisposed to more diseases and insurers will charge higher premiums. In other cases, looking for life insurance when you grow older make it harder for you to qualify for the insurance policy.
Since you don’t want to be reminded that you are dying by taking on expensive life insurance when you are older, it is safer for you to get started now.
- Funerals are expensive
This article is all about the hard truths of life, and this is one of those. Your funeral will cost a lot of money. You don’t want to leave your family with a huge end-of-life party bill when you can take a life insurance policy that will cover all those expenses!
- It eliminates the financial burden on your loved ones upon your demise
Without a life policy, your family will be burdened with your student loans and all the other debts in your name. But, with a life insurance cover, those financial issues will be taken care of easily and your loved ones might also benefit from the money.
- Think of it as a savings plan
If you think that you don’t need a life insurance policy, think of it in the lines of the money you will have stowed away in 50 years. To realize this dream, opt for a whole life insurance policy rather than the term insurance policy. A whole life insurance policy accumulates with time, and the best part is that it is tax-free. Also, you can borrow money against your life insurance later on. So, think of it a low-risk savings account.
Lastly, if you plan on having kids, then you need a life insurance policy to protect and educate them. It could also protect your business.
Where to start? Research widely and compare what insurers offer in their insurance quotes before you settle on an insurer.