Life insurance can help protect your loved ones against loss of income and other financial uncertainties in the event of your death. In fact, purchasing life insurance can be an essential part of a smart financial plan, according to some experts, which should also include regular saving and investing.
And purchasing life insurance while you’re young can have particular cost benefits.
Here are five reasons why looking into life insurance is likely to be a good idea.
1. Your premiums can be lower.
The younger you are when you purchase life insurance, the lower your monthly premiums are likely to be. When considering term life insurance, your monthly premium is a fixed amount that stays the same for the term of the policy.
2. It can help replace lost income.
Your wages and salary are essential to your family. Life insurance can help your spouse, partner, or children replace the income you contributed when you were alive. That can include day-to-day expenses, monthly bills, and other common financial obligations.
3. It can help with burial costs.
It may be unpleasant to think about, but the average funeral costs up to $10,000 today. Life insurance can help offset some of those costs.
4. Paying for educational expenses.
If you have children, you’ll want the best for them, especially after you’re gone. A life insurance policy can help fund their educational expenses, whether that’s in a custodial account, or some other educational account, such as a 529. The money can also cover the cost of your remaining student loans, which can be really helpful if you had a cosigner.
5. Paying outstanding debts.
You and your spouse or partner may have a mortgage or other debts, such as credit card or other loans you co-signed together. Life insurance could help with those loans.
Planning your financial future is always a challenge, and the future is filled with unknowns. Life insurance could help your family manage their expenses without you. And the sooner you consider a policy, the cheaper it’s likely to be.
Ready to get covered? Click here to learn more from our partner Bestow.¹