You live a busy life. You’ve got a family that needs your attention and a mortgage/rent to pay. Or perhaps you’re a budding entrepreneur with a growing business. Maybe you’ve got both the family and the business! And even with your tight schedule, you still make time for a health conscious lifestyle. With so little time left in your day, getting life insurance could easily fall to the bottom of your to-do list—especially if you think you are a low risk case. However, we never know what life will throw at us, and the financial security that life insurance provides can ensure that the things that matter most—your family, home, and business—will continue to thrive, should the unexpected happen. Here are 5 reasons why life insurance should be an immediate priority.
1. Financial security: your family depends on you—and your income.
Life insurance can ensure that your hard work will ultimately pay off for your family, no matter what happens. It might not seem obvious right now—while you are younger and in good health—but unexpected accidents or illness can happen anytime. As a result, your family could be left with medical bills, funeral costs, and other financial burdens that can accrue when someone dies. A life insurance payout can help cover these costs as well as continue to replace your lost income. In short, life insurance is an easy way to ensure that your family’s financial needs will be met for years to come. Bonus: life insurance proceeds received by the beneficiary aren’t generally included in gross income at tax time; however, it’s smart to always review your personal situation with your tax advisor.
2. Keep the roof over your family’s head.
Buying a home is a huge decision, and one that most people hope will last through the generations. Ideally, we would like to leave our homes to our spouses or children after death, but if the sudden loss of your income means that your family can no longer make mortgage payments, there’s a strong possibility that the people you care about the most will not only lose a loved one but also the space associated with loving memories. Life insurance payouts make sure that your family home is protected.
3. A back-up plan to keep the future bright for the kids.
Many people spend years saving for their children’s college tuition—but what happens if a parent suddenly passes away? That educational nest egg might be neglected in the wake of a parent’s sudden loss of income. Life insurance can help protect your children’s future by providing them with the tuition they need for their secondary education. And even if your children’s tuition is already covered, life insurance can help support them as they venture out into the world after college. With rising housing costs and a lack of experience when starting off in the job market, young adults today often rely on the support of their elders to get their financial lives off to the right start.
4. Life insurance for a second income or non-wage earner? You bet!
Losing a spouse can be devastating emotionally, but for most people, it can also be devastating financially. The majority of married people make plans according to a shared budget and resources, and to suddenly lose that support can throw those plans into ruin unless there’s a backup. A financial payout might also cover portions of your spouse’s lost income or even your parents’ income if they need to take time off from work to grieve and take care of estate matters. And don’t forget the hidden expense of a stay-at-home parent—a life insurance payout can provide income for a non-wage earning spouse for months or even years.
5. Leave assets behind, not debt.
Many people forget that debts such as car payments or private student loans will likely also become the responsibility of those you love. Financial debt can become a burden on your family—one that would weigh on them for years or even decades. A life insurance payout can ensure that your family—as well as parents or debt co-signers, if applicable—won’t be burdened with your debts and can focus on rebuilding their future in the wake of an unexpected death. Life insurance also protects your valuable estate and family heirlooms, which are frequently liquidated for cash to cover debts and other expenses associated with the passing of a family member. And don’t forget your business—if you are an entrepreneur, you likely have business partners who are counting on your investments or relying on you to pay back your debts.
So while it might seem easy to put off life insurance for another day, the truth is we never really know how many days we have left. And while a loved one can never be replaced, the cash payout of a life insurance policy is one way we can ensure that our loved ones will have one less worry and our legacy will be protected.
ABOUT HEALTH IQ
Health IQ’s mission is to celebrate the health conscious through financial rewards. Featured on Forbes, CNBC, TechCrunch, etc., Health IQ is the fastest growing life insurance company in the United States and has a 9.6 customer satisfaction rating on TrustPilot.