Categories: Family

Are You Prepared? The Importance Of Having Life Insurance

Why You Need Life Insurance

Life insurance is considered a necessity, but why? That’s a question many consumers are unable to answer. Sometimes it’s because they’re young and don’t have families yet, and sometimes they question the benefits relative to the cost. Wouldn’t it be better to put that money into a savings account or to invest it?

Looming Debt

Their thinking fails to account for the little disruptions that occur in life. They spend a bit of their savings on an emergency car repair, and when their TV breaks, they withdraw the cash for it, and slowly but surely the balance of their savings account approaches zero.

That’s assuming they have any savings in the first place; many Americans don’t. The average household carries $79,083 in debt, and only 24 percent of the population is debt-free. That means that without life insurance, the only thing that gets left behind is debt, and in a household that’s one person down, it may be impossible to pay.

While it’s an unpleasant reality to think about, if one or both of the primary earners within a household dies due to illness or an accident, it could mean that whoever is left will be out on the streets because the mortgage hasn’t been paid, or they’ll be left without a car because they can’t keep up with the lease as well as purchase other necessities. Sometimes life insurance is the only thing that can keep a family out of poverty.

What About the Funeral?

Currently, the average cost of a funeral is between $7,000 and $10,000. If there’s no money in the estate, it’s up to the spouse, relatives and adult children to cover the bill, and that means they not only have to deal with loss, they may have to carry a sizable debt in order to give their loved one a proper send-off. Life insurance can’t take the sting out of tragedy, but it can ensure that the ones left behind are free to grieve without a hefty bill weighing on their minds.

Related Post

Lifetime Benefits

Life insurance isn’t usually thought of as something that benefits the policy holder, but there are a few perks that can more than cover the cost of the policy, even if the policy itself never needed.

The biggest benefits are tax benefits. Income placed into a life insurance policy is tax-deferred, and that puts more money in the pockets of retirees. Social Security and Medicare are both in the red, and the only way to guarantee that there will be enough money to live comfortably in retirement is to have some form of savings. Life insurance is one of the best ways for the average person to accrue a large amount of cash, and if everyone that needs to be provided for retires or grows up, there’s no reason not to make use of it.

The Best and Worst

The reason that life insurance is a sound investment is that it pays off no matter what happens. Someone that lives through the entirety of their natural life gets a large chunk of money that they can use to support themselves and their spouse during retirement, and it offers peace of mind if anything should happen on the way there. It takes one of the greatest tragedies in life and at least makes it manageable in practical terms, and that is worth any price.

Teri Baker is a guest writer for www.kanetix.ca/life-insurance where you can find out more about Kanetix life policy.

Editor: Sworn to Bring you the Latest and the Best Info. Get the News You can Use. Read, Share and Enjoy!

Leave a Reply

Your email address will not be published. Required fields are marked*

The field is required.