Life insurance is considered by many to be one of the most important coverage a person can get. Sadly though, many people are still without this important cover. Looking at some reasons why you need to get one today may help you have a better understanding of the benefits of this cover.
1, Many people own homes that were purchased with mortgage loans. In fact, the majority of homeowners own those homes with the help of mortgage loans. What happens to your family if they are unable to make the mortgage payments again due to the loss of the bread winner? Many homes have been lost because of this sad event. I hope you do not think that your mortgage provider would stop collecting their payments because someone died? Of course they won’t. They make sure that their investment is secure which is why they insist that you have an adequate home insurance cover. You therefore need to protect your biggest investment which is your family from this double heartache. Let them just deal with the loss of a loved one and not add to it the loss of a home just because they could not meet up with their payments. Getting a term life insurance policy for the duration of the mortgage loan and for the amount is a way of ensuring that your mortgage would be paid off no matter what happens.
2, For some it may not be mortgage. It may be an outstanding debt or loan. You can take the stress off your family by taking out a term policy for this.
3, You could say to yourself “I do not have any debts so I am free”. It is great to know you do not have any debts. Well, you need to know that with every death comes expenses. These expenses include the following:
Funeral costs – We all know (or may not know) that funeral costs can be a source of financial stress. I know from experience. My dad’s death put us in a very tight financial situation which we of course would rather not have been in.
Taxes – At death, your estate is looked at and you family can be required to pay huge taxes leaving them with not as much as you left them.