Why do I need life insurance is a question I get a lot. Life insurance is normally not a hot topic of conversation until someone we know has died unexpectedly and does not have any. Their loved ones are left behind without the income or personal contributions that person brought to the family. The absence of life insurance can add extra stress to an already grieving family.
If you are someone that does not have any dependents or debts, you may not need life insurance. While many would suffer emotionally in the event of your death, they would not suffer financially. But there are many times when purchasing life insurance is important.
There are millions of people in the United States that don’t have life insurance. In some cases, not having life insurance is one of the worst mistakes that you could ever make for your loved ones.
Why do I need Life Insurance?
Let’s say you purchase a home and take out a mortgage – if you died unexpectedly, how would that mortgage get paid off? There is a need for a life insurance policy. It could be a term policy that tracked along with the years and debt left in your mortgage. You pay the minimal premiums and have the peace of mind that there will not be a financial burden left behind in the event of your death.
Marriage! You find the love of your life and get married – there is a need for life insurance. Most likely, you and your spouse will share in expenses and purchases. This will determine how much your housing will cost, you may both have a car payment, or you may incur credit card debt. Should one of you die, the other is left behind with the responsibility of covering the costs of these types of expenses. The face amount of the life insurance policies you purchase can be determined by the amount of income each person contributes plus the amount of debt in total that you share.
Another scenario that creates a need for life insurance is having children. When you purchase a life insurance policy, you can have the knowledge that your family will be “okay” financially should you pass away. The remaining spouse will be left to conduct all the duties that were once divided between two people. Most people left behind as a single parent will likely need to work to pay the family’ bills, spreading their time even thinner. Life insurance can help ease these burdens by:
- Paying off debt: mortgage, credit card bills, car loans
- Maintain the family’s lifestyle
- Allow the remaining spouse to possibly work less to be there for the children
- Providing funds for the children’s college education
- Purchase help with duties such as cleaning, yardwork, tutoring for the children
So often we hear people say they do not need life insurance. While we hope they won’t need the insurance, it is irresponsible to leave your family that would be left behind in your untimely death. We purchase insurance for our cars, our homes, and our health, and our teeth to name a few. Why would you not take the additional step to purchase the minimal amount of life insurance needed to take care of your family and responsibilities should you die? Are you wondering if you can get term life insurance for people with heart disease? If so, we can help!
Deciding how much life insurance you need can be a tricky process, but it doesn’t have to be that difficult. Having life insurance is a vital decision, but it’s also important that you ensure that you’re purchasing enough life insurance to protect your family. Not having enough coverage could leave your family with thousands of dollars of leftover expenses after the payout of the policy has been used. There are several different factors you need to consider when calculating your life insurance needs.
We mentioned all of the various reasons that you need to purchase life insurance, your life insurance needs are going to vary based on the reason that you’re purchasing the plan. In general, you’ll need to calculate your debt and final expenses. Your loved ones would be left with all of your unpaid bills after your passing, which could leave them in a hole of debt and know what to get out. A life insurance policy gives them the funds they need to pay off all of those final expenses. In just about every situation that we laid out for life insurance, your debt should be considered when purchasing your coverage.
Another factor that you may need to consider is your annual income. If you’re purchasing this policy because you got married, or because you had a child, the secondary goal of your policy is to replace your paycheck if anything tragic happens to you. The majority of financial experts suggest that you aim to purchase around seven to ten times your annual income for your loved ones. This will give them plenty of resources to replace your income without sacrificing their standard of living.
Getting Affordable Life Insurance
One reason that a lot of people don’t have life insurance coverage is because they assume that it’s going to be too expensive. In most cases, that couldn’t be further from the truth. There are several ways that you can lower your rates and keep more money in your pockets. Your finances shouldn’t keep you from getting the coverage that your loved ones deserve.
If you want to save money, the first thing that you should do is cut out any tobacco that you currently use. If you’re a smoker, then you can expect to pay much higher rates. In fact, smokers are going to pay twice as much for life insurance. Those cigarettes are costing you a lot more than you might think. Quitting can save you thousands of dollars every year.
Another way that you can save money is to improve your overall health. Before the insurance company approves you for coverage, they are going to require that you take a medical exam (unless you have chose to purchase a no medical exam life insurance policy, which will come with a higher premium rate). The results of that exam are going to impact how much you pay every month for your protection. If you want to save money, you need to improve your health. The two best ways to do that are to get regular exercise and stick to a healthy diet. Both of these can help you lose weight, lower your blood pressure, and much more. If you’re overweight when you apply for life insurance, then you’re going to pay around 50% more for your life insurance coverage. Losing weight will not only improve your health, but it will also keep hundreds of dollars in your pocket every year.
The best way to save money on life insurance is to compare dozens of companies before you pick the one that you’re going to coverage from. Each company is different, and all of them are going to offer you different rates based on their medical underwriting. Finding the best company is the difference in getting an affordable plan or getting one that breaks your bank every month.
There are over 800 companies on the market, which means that you could spend days calling different companies. Instead of wasting your time, let one of our independent agents do all of that hard work for you. Unlike a traditional agent, our independent agents work with dozens and dozens of highly rated companies across the nation. We can bring all of the best quotes directly to you.
We can assess your needs, see where you are in your life, and give you the advice you need. We will provide you with help so you can decide how much and which type of insurance that would be best for your current needs. Just like life changes, so will your insurance needs. We service our clients throughout their lives and make the changes they need to their life insurance plans accordingly. Often your budget plays a large part in the excuse to not purchase life insurance. You may be surprised at the price for term insurance coverage. We have an insurance quoter on this page for you to get started and learn about pricing. By getting in touch with us, we can better assess the face amount, the length of time, and pricing of the life insurance you need. Our 20 years in the life insurance industry give us the background and experience to help you move forward. The longer you put off purchasing life insurance, the more expensive the premiums could possibly get due to your increase in age and changes in health. If you have any questions about life insurance or about getting enough coverage for your family, please call us today. We would be happy to answer those questions for you.
Give us a call at 1-800-712-8519 or use the term quote form on this page to get your free quote.