Here’s Why You Need to Buy Life Insurance

Life insurance doesn’t just protect your estate, family, and legacy once you die; it also buys you peace of mind. If you have family members and loved ones who depend on you and are likely to be impacted when you die, purchasing life insurance is a good idea. Here’s why you should get it.

Funeral Expenses

Your life insurance policy covers the cost of your funeral and burial. This allows your family to mourn you without having to bear your funeral expenses or run around making funeral arrangements. The National Funeral Directors Association has estimated the median cost of a standard funeral service with viewing and burial to be $7,640.

Your Children’s Future Financial Expenses

Young children who currently depend on your income will still incur expenses years after you die. A good life insurance policy will cover things like college tuition and living expenses, and eliminate worry for your partner and other family members invested in their future.

Replacing Income

Life insurance replaces your income, ensuring your family can keep the same lifestyle after you die. If you don’t have an income but still contribute to the household with unpaid labor (for example if you are the primary caregiver of young children), a life insurance policy will allow your spouse or partner to hire someone who can do the work you did.

It Helps Your Heirs Cover the Estate Taxes They Owe

In 2021, the federal estate tax was levied if the deceased left behind assets worth more than $11.7 million. Therefore, purchasing life insurance is crucial if you have a large estate and several holdings.

It Pays Off Debts

Debt doesn’t die when you do. It gets inherited by co-signers on a loan, joint owners or account holders, or spouses in states like California and Texas. A life insurance plan can help your loved ones pay off your debts.

It Helps Buy Shares from A Business Partner

As one-half of a business partnership, life insurance can provide the funds you need to pay off obligations when your business partner dies. This is a safekeeping measure for the business and eliminates the need to sell the company.