Why do I Need Life Insurance? 5 Important Reasons

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Time flies, we are getting older and perhaps building families. It thickens more when we start having questions floating on our minds about what will happen to our families when we are gone. Some of the questions are; ‘What is life insurance?’ and ‘Why do I need life insurance?’

Life insurance is something that you truly need. Is it a necessity or an afterthought? According to many, the latter is true, but there are actually a lot of compelling reasons why you should purchase life insurance.

To Protect Your Family

If you have a family that depends on you then purchasing life insurance is a must. Because the insurance cover replaces your income when you die. If you are a parent with young children or even adults who might find it difficult to sustain themselves when you are no longer around, a life insurance cover is all you need. Moreso, you will need to provide extra costs for hiring someone to cover household tasks like cleaning, looking after children and everything your family will need.

To Pay Off Debts

Other than protecting your family and ensuring all the day to day expenses are catered for, life insurance ensures all the debts like mortgage are covered for. Paying off the mortgage means your family will not have to sell the house. Credit cards, car loans, and funeral and burial costs will not worry your family anymore since your cover will cater to that.

To Leave Inheritance

If you do not have assets to pass to your heirs as inheritance, life insurance is here for you. Buying a life insurance policy and naming your spouse and kids as beneficiaries is as good as leaving them assets to inherit. The policy will ensure a firm financial future for them and cater to all their monetary needs when you are gone.

To Ensure Peace of Mind

Death is inevitable. And the most bitter part is we do not know when we will pass away. It may be the next minute, or after 20 years, but eventually, it will and must happen. Life is priceless and no amount of money can replace it. But more importantly, purchasing life insurance can take care of all the uncertainties in life. Rather than leaving your life in a difficult time of loss, purchasing a life insurance cover will sure bring them peace of mind. It is something you can be sure of and you will not have to worry if they will be taken care of when you are no more.

To Buy a Business Partners’ Shares

If you are involved in a business partnership, you will need insurance on your partner’s life so that when they are gone you will have enough money to buy their interest and pay their share according to the company’s obligations. This will prevent the need to sell the company itself. Your partner too needs the same.

Some people have a notion that life insurance is a scam. May regard it that way because the money from premiums is lost if death happens outside the covered period. Of course, you will die, but no one knows when it will be. But to be on the safe side, Why not cover your loved ones?