The Importance of Life Insurance

life insuranceBy definition, life insurance is a contract where an insurance company promises to pay a sum of money to a designated beneficiary (ex. spouse, dependents) if the insured individual passes away.  That sum of money is referred to as a death benefit and will go to the designated beneficiary.  Life insurance is a type of insurance that isn’t mandatory but has definitely got people considering its purchase because of the benefits it provides.  Every human life is precious and irreplaceable and the unexpected loss of a loved one can have a devastating effect on the family, emotionally and financially.  Here are 3 reasons why you should consider getting life insurance.

1. To Protect Your Family

A primary reason to consider getting life insurance is to protect your family against the financial problems that are associated with the premature death of a loved one.  These financial problems include unpaid medical bills, funeral expenses or any debts outstanding.  The death benefit provided from the insurance company will help to cover these expensive costs.  A life insurance policy in place provides financial support to the deceased’s family, protecting them from future creditors.

2. Life is Unpredictable

Life is unpredictable.  No one knows when they’re going to pass away or how it will happen.  All of this is unknown and a prime reason to purchase life insurance.  If your family depends on your income for financial support, you should consider purchasing life insurance to protect them from unexpected financial costs and hardship.  We don’t know what will happen in the future but we can do things that will make life in the future easier for our loved ones once we’re gone.

3. To Bring Peace of Mind

Life insurance helps to bring peace of mind to the family and loved ones of the deceased.  No amount of money can ever replace the feeling of a loved one but an insurance policy can help bring peace of mind to the family.  Having life insurance coverage will bring peace of mind to both you and your family, knowing that there is help for the future.  It’s one less thing you need to worry about once you’re gone.  With the uncertainty of death, life insurance helps to protect your spouse and children from the uncertainties of tomorrow and provides them with the support to get through difficult the times.

There are many reasons why an individual will choose to purchase life insurance and because of these reasons, there are many policies to choose from.  You choose from a term life insurance, a cash value life insurance, whole life insurance or universal life insurance.  With a variety of policies to choose from, there is one available to suit your needs and lifestyle.  Life insurance may not be a physical object that can be seen or touched, but it is another important way to protect you and your family from the unexpected.