The REAL Reasons You Buy Life Insurance

There are many logical reasons for purchasing life insurance. One of them is that it is a cornerstone of a well thought out financial plan.  But let’s get real, life insurance is not for you, it is for your family and it is one of the most selfless gifts you can give the loved ones you will leave behind.  Purchasing life insurance is a pretty simple act, but the reasons behind it are usually emotional and often difficult to express. 

Millions of people buy life insurance every year because of those complex reasons.  They want to meet responsibilities, take care of loved ones and keep promises. If you are waffling between waiting to get life insurance until a life event occurs (marriage, the birth of a child, etc.) and getting life insurance now, here are some reasons to consider it:

• 73% of consumers leave an average of more than $61,500 in debt behind when they die. (Source)
• Dependents can be more than children. Who are you leaving behind that you are responsible for if you die, elderly parents, an adult child with special needs?
• Life insurance is not as complicated or as expensive as you may think, and it will never be cheaper than it is right now for you.

This information is just to help you understand that purchasing life insurance is a decision that affects a wider circle of people than yourself.  There is no reason to be anxious or worried about how your loved ones will be affected financially when you are gone, and here are a few positive reasons that your life insurance is critical to those very same people you care so deeply about:

• This one to me is the BEST one – your family will be able to get through the grieving process without adding financial burden on top of it.
• Your children will not be left with your debt.
• If you intended for your children to go to college, that tuition can be paid for.
• Funerals can be pretty expensive, even a small life insurance policy will take care of this cost so your family doesn’t have to.
• You could use it to supplement your retirement. Some life insurance policies accumulate a cash value that can be borrowed against tax-free. This aspect can have fees, so let me know if you have questions.
• You can even protect your business using life insurance, whether as a policy to insure a key employee or adding a tax-free infusion.

As you can see, there are many reasons for purchasing life insurance that go beyond understanding that it is a key component of a sound financial strategy.  Life insurance is connected to the overall emotional and financial well-being of the ones you leave behind.  Having a sound policy in place gives you a little more freedom to think about other things and live life to it’s fullest! 

*Gilliam Insurance Advisor is not approved by, endorsed by, or affiliated with a government agency. 

Image by Blanka Šejdová from Pixabay