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Top 5 reasons to buy life insurance

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Most people should have life insurance in place – even if they don’t know it.

While it might not be fun to think about getting a policy that pays after death, there are plenty of reasons why this type of coverage should be a financial priority when planning for the future.

Not convinced? Here are five great reasons to get life insurance ASAP for anyone who doesn’t yet have a plan in place.

1. It offers crucial protection for loved ones

No one wants to leave their dependents in trouble. Unfortunately, that’s exactly what could happen if an untimely death occurs. Anyone who has loved ones who depend on their income or the services they provide should ensure that life insurance is in place so that their family members do not end up with insurmountable financial problems after a death.

2. It replaces lost income

Many people build a common life with people who depend on them for a living. For example, a married person may have a joint mortgage with a spouse that relies on both incomes to pay. Or someone who has children is obviously going to plan to support them financially.

Obviously, if a person dies while still working, their income will stop coming. Life insurance can provide cash to replace that missed income so that bills can always be paid.

3. It covers funeral expenses

Funerals are extremely expensive, often costing thousands of dollars for even a simple affair. Without life insurance, surviving family members may have to cover these costs. This could lead them into debt or create financial difficulties, as there is often enormous pressure to give a generous last goodbye.

Life insurance can cover burial costs and other funeral-related expenses to ensure survivors aren’t put on the spot and asked to come up with money they don’t have. may not be available to them.

4. It enables the repayment of debt

Many people incur debt in their lifetime. In some cases, these debts are canceled if there is no money to pay them. But if there is a joint debt – like a shared mortgage – or if the deceased co-signed someone for loans they took out, then the debt must be repaid.

Creditors can also attack the estate and try to seize the property that the deceased would prefer to leave to his relatives. And any secured debts, such as a car loan or mortgage, should be paid so that the heirs keep the asset to which the debt relates.

A life insurance policy can provide the funds needed to pay off any outstanding loan balances so the deceased can meet their obligations to creditors and ensure that there are plenty of real estate assets left for the heirs.

5. It’s affordable

Finally, buying life insurance makes sense because it is an affordable type of protection, especially if a policy is purchased while young and healthy. The peace of mind and crucial financial security that a term life insurance policy provides is well worth the small monthly premiums.

For all of these reasons, consumers who do not yet have a life insurance policy in place should seriously consider getting coverage as soon as possible.

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We are firm believers in the Golden Rule, which is why editorial opinions are our own and have not been previously reviewed, approved or endorsed by the advertisers included. The Ascent does not cover all offers on the market. The editorial content of The Ascent is separate from the editorial content of The Motley Fool and is created by a different team of analysts. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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