Beyond paying for end-of-life expenses, there are various types and features of life insurance that can support your loved ones financially long after you’re gone. Here are five common reasons why people buy life insurance.
To Take Care of Dependents Financially
If you have loved ones that depend on your income, life insurance is a must. Life insurance can prevent your loved ones from the potentially devastating financial losses that could occur if something happens to you.
To Substitute Lost Income After Death
It may be difficult for your loved ones to sustain their standard of living through the loss of an income, but a life insurance policy can replace lost income if something happens to you. There are many tough decisions to make after a primary income earner passes away, and a life insurance policy lets your loved ones continue living their life and can help them to adjust over time.
To Cover Funeral Expenses and Outstanding Debts
The average funeral costs around $10,000, and while it’s not fun to think about, buying a life insurance policy to cover funeral expenses and outstanding debts can prevent financial hardships during an already emotional time for your loved ones. Final expense insurance—also known as burial insurance—is a great alternative to traditional term or whole life insurance. End-of-life costs, including funeral expenses, credit card debt, medical bills and any other debt you don’t want to fall on your loved ones after you’re gone can all be covered with final expense insurance.
To Pay Ongoing Living Expenses
Paying for everyday expenses can be difficult with the loss of an income. From utilities to healthcare to clothing and food, purchasing a life insurance policy can ease the stress of ongoing financial obligations for your loved ones.
To Protect Other Assets
A life insurance policy can be a major asset to your business or other assets by paying off any debts or funding a buy-sell agreement. An often overlooked feature of term life insurance is that it’s tax-free, giving your beneficiaries the full amount of your policy if you pass away while it is still active.
SelectQuote Can Help Get Life Insurance for Your Needs
Whether it’s deciding between term or whole life insurance, or deciding on the amount of coverage you need, we’re here to make the process of shopping for life insurance simple. At SelectQuote, we’ll take the time to listen to your needs and can quickly compare the different types of life insurance coverage and rates available to you. In just minutes, we can provide you with unbiased, personalized price comparisons from some of the most trusted life insurance carriers to help you find the right coverage with the right carrier at the right price for you.