Life insurance is something everyone should consider investing in, especially when getting married and starting a family. But there are other lesser-known instances where life insurance is important or helpful.
Here’s a list of five reasons to buy life insurance that you may not already know about:
1. Buying a house – When buying a house, life insurance acts as a kind of mortgage protection. Term life insurance can be used to payoff the remaining mortgage balance so that, should something happen to the homeowner, the other people living in the house will be protected and won’t face financial hardship or homelessness.
2. Starting a business – For your business, a life insurance policy would ensure the continuation of your business when you’re gone. A life insurance policy can be extended to cover any business debts, fund buy-sell agreements with your business partner(s), or provide coverage for key persons (like your employees, who depend on their job with your company to make a living).
3. Supplementing retirement – Life insurance can be used to make sure that your retirement savings last. An annuity is like a pension plan in that it can provide tax-deferred growth for your retirement savings. You put money towards a life insurance plan and in exchange, you get a stream of income each month for as long as you live.
4. Giving to charity – Life insurance can allow you to leave behind a gift for the charity or cause of your choice that is much larger than you would otherwise have been able to set aside for donation.
5. Illness – If you become terminally ill, life insurance can provide you with financial support. It can also be used in the case of medical emergencies in the form of a withdrawal or a loan against your insurance plan.
There is no such thing as a “one size fits all” life insurance plan, so make sure you invest in a life insurance plan that is right for you. Here at SelectQuote, we make it our priority to find you a policy to suit all your needs.