10 Reasons Why Everyone Should Have Life Insurance

Life InsuranceAgainst common belief, life insurance isn’t just for the adventurous, rich, or elderly. What we leave behind after we die isn’t typically something most people spend a lot of time thinking about, but perhaps we should consider the impact our passing would have on others.

Between funeral expenses and unfinished business, your death could leave a greater burden than intended on friends and family. So whether you are 25 or 65, a daredevil or cautious, the reasons for getting life insurance are endless. Here are the top 10:

1. Policies are Cheaper When Bought Young

Applies mainly to younger readers, but it’s best to get a policy as soon as possible in your life. Naturally it should not take precedence over making sure you are financially solvent, but if you find yourself with plenty of savings saved up for a rainy day, buying a policy now can save you thousands in the long run. A healthy young male (around age 30) can get a policy as low as $35 a month – while a 45 year old with the same policy might be paying about $60 per month.

2. You Have Co-Signed Loans

Whether a car, a home, or some other debt, if you’ve co-signed on a loan and kick the bucket, the other person is left responsible for paying off the entire debt. A life insurance policy can pay off those debts instead of leaving friends of family left to cover them without support – debts they might not be able to afford.

3. You Own a Small Business

If you are partnered with another in a small business venture, a life insurance policy can be very useful for ensuring that your business can continue on without you. With the money from the policy, partners can afford to buy out your stake in the company in order to keep things afloat.

4. Funeral Costs

No list about life insurance would be complete without mentioning funeral costs: getting a plot, a coffin, and a burial can all be expensive. Through the purchase of life insurance, you can cover, or at least greatly mitigate these costs, sharply easing the burden on friends and family.

5. It is Tax-Free

While inheritances are subject to taxes, death benefits are tax free. By putting financial resources into a life-insurance policy you can leave an inheritance that goes to your heirs without a dime going to the government.

6. Help Support a Cause

Perhaps there is a cause you support, but simply don’t have the financial resources to donate much to them after your passing. A good life insurance plan can dedicate some of the money to a donation to your favored cause and create a lasting legacy for yourself.

7. Pays the Taxes on Your Estate

If you leave an estate behind, there are lots of taxes to be paid on those assets that the beneficiaries would be responsible for. A life insurance policy will help to cover those expensive taxes on what you leave behind and ensure that your heirs can keep what you leave them.

8. Death Can Be Sudden

It is a mistake to assume death won’t happen to you – even if you are healthy and young. Accidents do happen, and many find themselves leaving a financial burden to their friends and family without ever seeing it coming.

9. You Support Others

If there are friends or family who depend on your financial resources to stay afloat, then life insurance becomes a no brainer. Without your income, those who are dependent on it will find themselves without the means to stay afloat, and may suffer for it in the long run.

10. Grieving Money

The reality is: we don’t know how our loved ones will react when the time comes. We hope that they will handle things responsibly and rationally, but grief can make us do crazy things. When business matters are settled, and there is a little left over, what’s left of a strong life insurance policy can provide our closest family members with a little something extra with which to “go crazy” with, or even simply have fun with – allowing them to mourn your passing in a sometimes extravagant manner without leaving them with crippling debt in the long run.

A life insurance policy is one of the best investments you can make in the long run, and buying such a policy can help ease financial burdens for everybody in the long run, while providing yourself peace of mind that if the worst should happen: your loved ones are covered.



MSN Money


Today’s article was brought to you by Brennen Kliffmueller. Brennen is the type of guy who like to live life carefree with a sense of adventure, but he also knows the importance of covering your bases and ensuring you are prepared for the worst while expecting the best. Brennen is also a professional writer for Insurance Land. To read more of his work, be sure to visit his Google+.