Life is easy when we are young and carefree, but as we grow older things start to get more complicated. All of a sudden, we have people that are dependent on us, both emotionally and financially. We can start to worry about what would happen if we weren’t around to protect them. This is what life insurance is designed to do. It can give your loved ones the breathing room they need to try and cope with your loss as well as helping them and you out in a number of other ways.
Read our 5 reasons why you need life insurance for more details:
- To protect your family & loved ones
A financial payout following your death isn’t going to remedy the grief that your loved ones will feel. It will certainly make it easier to deal with, however. Having a financial safety blanket will make working through the stages of grief easier and will help those left behind forge a new life for themselves.
They would much rather have you, but the financial payout will really help to protect them in your absence.
- To pay off debts
If you have outstanding debts such as mortgages or credit cards life insurance is pretty much essential. You really don’t want to add to the burden that your loved ones will have to carry after your death by making them work twice as hard to meet your financial commitments.
Make sure you take out a policy that fully pays off your debts to leave those you love with a clean slate. If you need help choosing a life insurance provider, have a read through our top 5 tips for choosing life insurance.
- To add more financial security
Life insurance can also help provide you with more financial security. Some policies, for instance, payout following the diagnosis of a terminal illness. This can give you and your family the income that you need to get through that period together and perhaps to make some memories.
You should also look into long term disability clauses in your policy. If this is included you could receive a payout if a disability prevents you from working.
- To Buy a Business Partner’s Shares
Life insurance might be important to protect partners in your business too. There are a few options available following the death of a business partner but often the best one is for the surviving partner to buy out the shares from the family of the deceased. To do this, it might well be the case that they would need life insurance to be able to afford to pay out this lump sum. It’s important, if you are in business, to agree on what steps should be taken following the death of a partner.
- To bring peace of mind
Knowing that things are taken care of, at least from a financial perspective, should the worst happen, can bring incredible peace of mind. It is worth purchasing insurance just to enjoy the freedom from worry that it can provide.
*This article was contributed.