Five Reasons to Buy Life Insurance

Unlike car or homeowners’ insurance, life insurance is one of those coverages that keeps getting moved further and further down the priority list. And that’s a shame, because life insurance can give both financial and emotional peace of mind to the insured’s family upon their death. While it may not be the most uplifting purchase you’ll ever make, in the long term, it could be one of the best.

If you’ve thought about buying life insurance but haven’t purchased a policy, below are five reasons why life insurance is a wise investment:

Pay for final expenses. Despite what you might hear or read on social media, GoFundMe is not life insurance. Rather than relying on the generosity of others to pay for your final expenses, why not take the initiative and pay for them yourself with the proceeds from your life insurance? There are many levels of coverage available; your agent can work with you to find a policy that best meets your needs.

Supplement your family’s income. If you’re part of a two-income household, losing one income would mean tightening up the household budget. But if you’re the sole earner for your family, the loss of that income due to your passing would be devastating. Life insurance can help make up some of the financial loss.

Pay for your child(ren)’s education. Many parents use the deceased insured’s life insurance proceeds to open a savings or 529 account to be used for their child(ren)’s higher education plans.

Charitable donations. If the insured was involved in a local organization or there was a cause especially important to them, you can still make contributions to that organization using some of the proceeds. Depending on the gift you wish to make or number of causes you wish to support, you may need to meet with a financial planner to make sure the funds are distributed according to the deceased’s wishes.

Continue a family business. Instead of selling the company that likely took years to build, life insurance proceeds can be used to offset business expenses, such as buying new equipment, upgrading or buying a new building, or expanding in other ways.

Life insurance is one of the best investments you can make in your family’s financial future. No one wants to think about the inevitable, but knowing your family’s needs can still be met after your passing can be very reassuring.