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7 Reasons Why You Need Life Insurance — Even Though You Think You Don’t

Posted by  on 2021-03-15  10:00:51 AM
7 Reasons Why You Need Life Insurance

Do you need life insurance? After all, if you’re young and healthy, life insurance would be an added expense, right?

In general, life insurance is needed when you have dependents to support. It covers the costs if you fall ill and, in the worst-case scenario, die. But if you’re single and have no dependents, it still doesn’t mean you can cross life insurance off your list.

Think of it this way. You can’t predict the future. Emergencies can occur where you might lose your job or need access to a supplementary income to get back on your feet – this is where life insurance can help.

Not only can life insurance teach you about money management, but it can act as a security blanket for your future. If you’re wondering how life insurance can benefit your current living situation, it’s recommended to speak to a life insurance broker about your options.

In the meantime, if you ever had doubts or questions about life insurance, here are seven reasons why you need life insurance – even though you think you don’t.

1. You’re a small business owner

If you are an entrepreneur who owns a small business, life insurance is essential. Life insurance covers your financial obligations by diversifying your assets and achieving your long-term business goals. In terms of taxes, you might be able to access a business-owned policy that offers a one-time, tax-free payout for your business should you, your employees, or your business partner accidentally dies.

2. You’re getting married

Getting married is a big expense because, naturally, you want the wedding to be a wonderful celebration. But marriage is more than a great party with family and friends: it’s more about two people joining their lives together in a union of love. It’s about sharing your life, including debt. It’s a fact that many married couples argue about money, so if you both have a significant amount of debt, life insurance can alleviate the stress.

Before you book your honeymoon, it’s a good idea for you and your spouse to purchase a life insurance policy. This ensures the right amount of life insurance coverage will keep your finances protected and help sustain your spouse’s lifestyle in the case of your unexpected death.

3. You’re planning to have a baby

Along with getting married, having a baby warrants taking out a life insurance policy because it sets up a safety net for your kid’s future. For instance, a life insurance policy can assist with your baby’s child-care and educational fees such as daycare and post-secondary school costs.

Life insurance can also offset some child care expenses if you or your spouse is planning to stay home to take care of the kids, and you will depend on one income. There are different types of life insurance terms for those planning to grow their family that we recommend discussing with a life insurance broker.

4. You work a high-risk job

Before you start paying for a life insurance policy, a life insurance broker will determine your premium based on your job’s risk level. So, let’s say you work in construction, law enforcement, aviation, firefighting, or mining. You would be categorized as a high-risk beneficiary because you pose a higher chance of dying on the job.

In this case, it’s recommended you take out a short-term disability insurance policy with life insurance in case you get injured on the job. Your life insurance policy won’t cover your injuries. However, if you were to pass away suddenly while on the job, your life insurance can be used by your spouse.

5. You financially support your elderly parents

If you financially support your elderly parents, it’s a good idea to get life insurance because they may require additional assistance as they get older. The benefits of life insurance guarantee that your elderly parents are allocated some money for personal expenses or health care expenses if you are no longer able to support them.

6. To cover a mortgage

If you pass away and you still have a mortgage or other loans that need to be paid, your spouse will be responsible for covering the monthly payments. If your spouse cannot cover the financial payments of your mortgage, the outstanding amount could be sent to a collections agency.

To avoid this situation, having a life insurance policy could alleviate your spouse’s financial responsibilities. If the primary reason for taking out a life insurance policy is to cover your mortgage, you need to avoid purchasing mortgage insurance from your bank. Mortgage insurance works differently from life insurance: the longer you pay mortgage insurance, the smaller the coverage. It will only cover the amount owed to your mortgage if you pass away.

The solution is to purchase an individual term life insurance policy because you will have to continue to pay premiums if you opt for mortgage insurance. Still, you may not be covered if you pass away. With life insurance, your spouse has a greater chance of obtaining a larger fund to cover the mortgage and other loans.

7. Cover funeral expenses

Sadly, death is a part of life that we all have to face one time or another. The last thing you want to do is leave the tab for your funeral expenses to your family while mourning. Even the cheapest funeral service can range from five to seven thousand dollars.

Some people who are frequently ill or suffer from multiple health issues may pre-pay their funeral to ensure their family can afford the expenses after they die. Nevertheless, pre-paying for your funeral poses some risks as the amount might not cover everything, and your family might still need to pay out-of-pocket expenses for the funeral. It’s better to opt for life insurance as it guarantees the funds to cover your funeral expenses and estate fees for your beneficiaries.

Now you have seven good reasons to get life insurance! We hope we’ve helped.

To learn more about why you need life insurance, call Goodison Insurance toll-free at 1-800-403-7703 or contact us here.

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