Seven Reasons to Get Life Insurance
You need life insurance to take care of your loved ones when you die… end of blog post, right? Wrong!
Life insurance is a financial safety net for your family but it also has other benefits. Think of life insurance as a financial tool. It’s not just about preparing for the end—it’s about building wealth and peace of mind right now. So, here are seven benefits of life insurance.
Care for Loved Ones
This is the most common reason for getting life insurance. Life insurance is like writing a love letter to your family and ensuring that they won’t struggle after you’re gone. So, how much life insurance do you need? Life insurance should ideally represent ten to fifteen times your annual income or potential earning power.
Pay Off Debt
Your debt should die when you do. Your family will already have to deal with the grief of losing you, they shouldn’t also have to consider how they’re going to repay loans. Calculate your debt – factor in smaller loans as well as more substantial payments like a mortgage – and you can purchase life insurance to expunge these costs.
Pay Last Expenses
Death is expensive—there’s the funeral home, cremation or burial, headstone, casket, transport as well as other costs like flowers or even catering for the wake. And we know wakes in Trinidad & Tobago can get pretty big! Your life insurance can cover these costs to ease the strain on your family at a difficult time.
Get A Mortgage/ Loan
A common misconception is that life insurance is for older people. We know, you’re young, healthy, you’ve got many years left… you’ll think about life insurance later. But, did you know that you need life insurance in order to qualify for a mortgage. Lenders want to know that if something happens to you, the mortgage can still be paid. Depending on the type of life insurance you have, you can also use it as collateral for a loan.
Accumulate Cash
Whole Life Insurance accumulates a cash benefit that can be accessed during your lifetime. The cash value can be used for:
- Emergency expenses
- A downpayment on your home
- Your child’s education
- Your dream vacation
- Retirement
- Debt repayment
Protect Your Business
If you’re a small business owner, your employees depend on you. They may not be equipped to take over the business if you die unexpectedly nor may they be able to pay your debts or sell it right away. You’ve worked hard to build your business, and life insurance can help protect it.
Peace of Mind
Life insurance protects your family, but it does so much more. It safeguards your business. It can allow you to get a loan or a mortgage, and can even accumulate a cash value that you can use to facilitate major milestones. All of that allows you to breathe easier. And that’s a great feeling.
What If You Don’t Have Life Insurance?
We’re here to help. And life insurance will probably cost less than you think; studies show that as many as eight in ten people actually overestimate the cost of term life insurance. If you want to know more, our agents will be happy to have a chat and tailor a plan perfectly suited to you.
