There are many reasons to buy life insurance, and while the need doesn’t exist for everyone, many individuals and families decide it’s well worth the cost. Here are some common reasons why you may want to get life insurance:
- Replace lost income: Many families depend on dual incomes to afford their standard of living. To protect that standard of living, many families choose to insure all or a portion of their future income stream through life insurance.
- Pay final expenses: Funeral, probate, uncovered medical expenses, and estate administration costs can add up significantly.
- Pay off debt: Many people utilize life insurance to ensure that debt burden doesn’t get transferred to loved ones should they die prematurely. Debts can include student debt, mortgage debt, credit card debt, and any type of personal debt.
- Leave a legacy: Some people want to make a positive impact on the world and choose life insurance as a means to accomplish this. Charitable organizations can often be named as the beneficiary on life insurance policies, so upon death, the life insurance proceeds are donated.