No matter your reason for purchasing life insurance, you’ll gain peace of mind knowing your loved ones will be protected if you pass away. There are a variety of life insurance policy options for you to choose from, whether you’re focused on paying for end-of-life expenses, protecting your assets or securing your children’s financial future. Here are five of the most common reasons why people buy life insurance.
1. Financially Take Care of Dependents
The people who will benefit from your life insurance benefits are your dependents. In the event of your death, your family will have to find a way to not only replace your income, but to meet any long-term expenses like mortgage payments, education and saving for retirement. Life insurance can help them do this, allowing your loved ones to tackle short- and long-term expenses without significant financial burden.
2. Substitute Lost Income After Death
It may be difficult for your loved ones to sustain their standard of living through the loss of an income, but a life insurance policy can replace lost income if something happens to you. There are many tough decisions to make after a primary income earner passes away, and a life insurance policy lets your loved ones continue living their life and can help them to adjust over time.
3. Cover Funeral Expenses and Outstanding Debts
The average funeral costs around $6,000-$8,000, and while it’s not fun to think about, buying a life insurance policy to cover funeral expenses and outstanding debts can prevent financial hardships during an already emotional time for your loved ones. Final expense insurance—also known as burial insurance—is a great alternative to traditional term or whole life insurance. End-of-life costs, including funeral expenses, credit card debt, medical bills and any other debt you don’t want to fall on your loved ones after you’re gone can all be covered with final expense insurance.
4. Pay Ongoing Living Expenses
While life insurance can help your family manage big-picture financial obligations after your death, it can help them meet day-to-day expenses, too. Paying for everyday expenditures can quickly become difficult after a loss of income. Life insurance benefits can help your loved ones pay for healthcare, clothing, food, household items, utilities and more, making things easier for them during a difficult time.
5. Protect Other Assets
A life insurance policy can be a major asset to your business or other assets by paying off any debts or funding a buy-sell agreement. An often overlooked feature of term life insurance is that it’s tax-free, giving your beneficiaries the full amount of your policy if you pass away while it’s still active.
Looking to buy life insurance? SelectQuote can help find the coverage that’s right for you.
No matter what your motivation is for purchasing life insurance, we can help you find the right coverage. At SelectQuote, our licensed insurance agents take the time to learn about your unique needs and situation. We quickly and easily search highly trusted carriers, comparing plans and rates on your behalf to make sure you find a policy that fits your needs and budget.
