The future is filled with uncertainties for everybody. However, despite these uncertainties, there are also many ways by which one can secure their future. It is never wrong or too late to think about how you can ensure that, no matter what happens, those that you leave behind are going to be alright. This decision even becomes more important and pressing when you’ve got people who are relying on you for their lives.
One of the most important purchases that you can make, in the pursuit of securing your future, is in the decision to buy a life insurance policy. There’s still a majority that chooses not to buy one. It always feels too expensive or the monthly budget may not be enough to squeeze in this kind of expense.
In this article, you’re going to learn about the various compelling reasons why it’s imperative to purchase a life insurance policy. Regardless of how much it is that you’re earning now, you never know when death will come. What happens to those you’ve left behind, suddenly faced with great financial turmoil? If you truly love someone, you care for that someone not only at present but also in the future.
That said, here are some of the significant reasons why buying a life insurance policy is one of the best decisions that you can ever make for yourself and your loved ones.
1. You Look After Your Loved Ones Even After You Die
This first reason applies to those of you who are already parents, most particularly when your children are still very young. You never really know for sure what’s going to happen to you in the future. Even when you think that you’re in the prime years of your life, this isn’t reason enough for you to not buy a life insurance policy. Death comes like a thief in the night, and there are high statistics of premature deaths. Should you fall as one of these statistics, you’re going to want to give yourself that assurance that the loved ones you’ve left behind are going to be just fine.
How would you like to have the ability to look after your loved ones even after you’ve died? Yes, you may not be able to do this in the flesh anymore. However, through a life insurance policy, you can make your loved ones feel that you thought of them and love them so much, such that you’ve planned your demise well financially.
Your family is still going to be dependent on you, even when you’ve long gone, so much so when you’re the breadwinner. There are needs of your young children that you can’t forego, such as their education. Here, the life insurance policy can help ensure that, even when you’re gone, the future of your dependents isn’t going to suffer.
Along with this also comes the peace of mind that insurance can offer for as long as you live. You don’t have to go through your life fearful that, should anything happen to you, your family and your dependents will face an uncertain future? This peace of mind is a sense of security that can help lessen anxieties in your life. When you are more relaxed, you can be more productive and people around you will feel comfortable with you. However, if you are always worried, you will tend to be stern, strict, and uncompromising to mask your fears and insecurities. In other words, insurance can be an effective tool for living a better life.
2. It Ensures That Your Debts Are Paid
Upon the death of an individual, depending on your bank and the kind of debt that you have, some of these are extinguished when you die. The most common example of this is credit card debts. However, most of the liabilities and debts that you have will continue and will be paid by your surviving family. The last thing that you’d want is for your heirs or dependents to have to pay for your debts. You should bring down assets to the next generation, never payables.
So, when you know that you presently have debts and other liabilities, it’s a prudent decision to have a life insurance policy. Your heirs may not receive the full amount of the benefits of your policy as the debts will have to be satisfied first. However, at least, your obligations are paid off instead of your dependents worrying and stressed out about paying your debts.
Aside from debts, some other types of liabilities that could be passed on to your heirs after your death are the following:
- Business or commercial liabilities
- Other personal debts
3. Enables You To Achieve Long-Term Goals
There are two general types of goals in a person’s lifetime: short-term goals and long-term ones. Short-term goals shouldn’t be much of a worry. Generally, you’ve got a higher chance of achieving these, as the timeline isn’t too far away. The risk of not meeting these goals is quite low. As to your long-term goals, however, you may worry that you may not be able to achieve these when something untoward happens.
With a life insurance policy, however, you have an instrument that can help to safeguard these long-term goals. Some of these long-term goals may include your retirement or perhaps buying a home for your family. With a life insurance policy, these goals don’t have to die with you.
There are now so many different types of insurance policies that also have savings and investment opportunities attached. These savings and investment opportunities can help give you that assurance that your future goals are still going to be met, even in your death.
4. It’s A Good Add-On To Your Job Perks
Many are mistaken in thinking that, just because they have insurance through their job, that’s enough. False. Don’t consider the insurance provided by your employer as primary insurance. The better and more practical approach is to see that as icing on your cake. You need to have one that provides more and a better sense of security for your family, particularly if you feel that the terms in the insurance policy from your work aren’t enough. It pays to supplement that insurance with another one of your own.
It’s also false to rely on the sense of security that your job now brings. Your job today isn’t a guaranteed job tomorrow. In other words, just because you’re able to accumulate a steady amount of savings right now, doesn’t mean that you’re good to go.
Remember that, while saving in the bank is always good, this isn’t necessarily the best option in the long run. As the saying goes, don’t put all your eggs in one basket. Most bank deposits only get a minuscule interest rate. If you’re looking to grow your investments, you’re better off with another means of saving for the future and that is via life insurance.
However, you may need to seek the help of a professional financial advisor so that you’ll have better ideas about how you can calculate the returns that you can gain from an ordinary savings account versus that of an insurance policy. With more flexible monthly premiums and better returns, a life insurance policy will generally be the better choice.
5. It Can Supplement Your Retirement Plans
It’s everyone’s dream to live until a ripe, old age. If you’re lucky enough for this dream to become your reality, the life insurance premiums that you’ve been paying can supplement your retirement plans. By then, you’re able to stretch out the money that you have, and, until you die, your money won’t run out. In fact, your heirs will still be able to receive that which is rightfully theirs through your insurance policy.
When you have a life insurance policy, it’s like you’re receiving a steady stream of income regularly. Your money grows, much better than ordinary savings would. Then, depending on the kind of insurance plan that you have, you can receive regular dividends periodically. This allows you to earn even more from the premiums that you’ve been paying for.
6. It Ensures That Your Business Thrives
If you’ve successfully managed to have a now successful and thriving business, don’t let it go to waste later. Don’t be too relaxed and think that your business will continue to expand and grow, even in the event of uncertainties. Many business failures happen when the owner or a ranking person dies. When death is sudden, the business may not be ready and weather the change. Chances are, the business may also be affected and sales can go do down. Poor sales can even lead to closure.
When you’ve worked so for your business to succeed, the last thing that you’d want is for the business to fail. particularly when you have children or heirs to continue your business. In case of your death, your heir will need some form of financial assistance, and your insurance can help.
A life insurance plan can also support you. For instance, if your have consistently low sales, an insurance policy can help your business through the lean years so that you have time to work on new strategies and revive the to rise higher, rather than simply accepting its death.
7. It’s Cheaper
If you’re reading this and you’re still in your twenties, then this applies to you. Take advantage of your younger age and purchase a life insurance policy. You should know by now that, as you age, life insurance premiums also increase. Hence, it’s never going to be cheaper for you, even if you feel and think that your economic and financial status will improve many years from now.
There are so many different types of insurance policies now that are cheaper and easier to have, such as no-exam insurance. Given the many options in the insurance market today, there’s no reason for you not to get insurance for yourself. Strike when the iron is hot, the saying goes.
In this context and for this purpose, it entirely makes sense that you go ahead and purchase a life insurance policy while you’re young. Few of the younger generations ever think about this; they’re mostly hardwired by pheromones to prioritize immediate fun and satisfaction. However, if you have a young person under your care, a little advice might work. It may mean that one has to sacrifice a few luxuries here and there but it’s a sacrifice worth making when the goal is better security in the future.
For many who think that life insurance isn’t important because they are young and healthy with no responsibilities, no cares, no worries, and no dependents. However, we never know. Many die suddenly in the most unexpected circumstances. In other words, the certainties of youth are no defense against the uncertainties of life.
Of course, even if you don’t have dependents now, this can change in the future. When you have children or old parents, it’s better that you already have paid for so many years of insurance premiums by then, before finances get tight. When you start and have kids, the budget is only going to be more demanding as expenses begin to pile up. If you’ve purchased life insurance earlier in your life, it means that, when the time comes for you to get married and have children, you’re only going to have a few years left to pay and this advantage makes it easier on your pocket, and easier for your family’s comfort.
If you feel as if paying for your life insurance policy is such a big burden for you, you’re not alone in that feeling. Many people do feel that way. However, this shouldn’t be reason enough for you not to get one. There’s no other better decision that you can make than securing your future and the future of your loved ones.
The reasons summarized in this article should be more than enough to convince you that indeed, buying a life insurance policy is something that you should consciously and deliberately do. Consider your life insurance policy as a necessary expense that one simply can’t forego. Make this a part of all of the financial plans that you’re going to make.