Purchasing life insurance coverage is a gift that you can leave for those loved ones that will be left behind when you die. Over 50% of Americans have life insurance coverage. This means that another half of the country’s population lacks proper life insurance coverage. Here are some reasons why you should purchase life insurance today.
The Loss of a Household Income Can Have Catastrophic Results
In the world that we live in, many families live paycheck to paycheck. If one household income disappears due to death, then it can be hard for the surviving family members to get by financially. Many people have lost their homes to foreclosure because they just can no longer keep up with the mortgage payments and other bills after a sudden death in the family.
It is important when choosing a life insurance policy to be realistic about your everyday liabilities so that you can choose a coverage amount that will provide enough financial help to your family for at least five years or more. This can provide a good cushion for the surviving family members so that they can slowly adjust the budget to deal with the sudden drop in overall household income.
The Cost of Final Expenses Can Be Quite High
According to Smart Asset, “the average cost of a funeral today is $7,181.00.” Many family members do not have enough money to cover the final expenses after a death. By having life insurance coverage, this expense can be covered so that no one has to go deep into debt to ensure that their loved one is properly buried or cremated. Many deceased individuals leave behind debts and medical bills so it is a good idea to have sufficient coverage so that those left behind are not unfairly burdened.
Life Insurance Can Build Cash Value
Whole life insurance coverage is a great option for people who want insurance coverage that builds up cash value over time. Whole life insurance is typically more expensive than term life insurance because it is a policy that is written for a person’s entire life and it allows for payouts before death. A term life insurance policy can last from ten to thirty years.
Whole life insurance allows people to also borrow against the cash value of the policy which can be very helpful if unexpected expenses occur. Some policy holders purchase whole life insurance when their children are born so that they can use it for college planning and cover tuition for their kids by borrowing against their insurance. If you are interested in learning more about purchasing life insurance then you should visit an insurance agency Stuart Fl.
When you go to an agency, an agent can sit down with you and go over your financial needs so that you can choose an insurance policy that is right for you and your loved ones. It typically takes about three to four weeks for a policy to go through underwriting and be issued. This can give you peace of mind as you know that your family will be protected even when you are gone.