Have you ever considered that when you buy life insurance you increase your spendable income? We all have responsibilities that we pay special attention to. We have to save for retirement. We must create an emergency fund, just in case. Surely we take care of our bills thereby maintaining a decent credit rating. These needs don’t go away because we are no longer here. The survivors have the same things to think about as we do now. Adequate life insurance can make it much easier on them.
If we are married and have young children the need is dire for adequate life insurance coverage. The family is going to need the income that we will no longer be here to earn. The mortgage or rent still has to be paid. That insurance premium that you now pay to cover the house in case of a fire or may be a hurricane still needs to be paid. The health insurance policy will still be needed…
The surviving spouse and children still need to eat. They still need to wear clothing. The children still need to participate in those extra curricular activities that you so enjoyed paying for while you were here earning the income. They need a car and they will still have all the expenses that this includes like monthly payments if money was borrowed to buy this car. The car has to be insured and maintained. It will need gasoline and oil to keep running.
If you own a business whether a sole proprietorship, a partnership or a corporation you need life insurance. The sole proprietor and the owner are one in the same therefore all the debts incurred by the business are debts of the owner. Life insurance is needed in partnerships and corporations to fund buy sell agreements and for key employee insurance.
If we have all things covered we have a little less to be concerned about. We have funds available that we could not touch if we did not have that life insurance policy. Of course we need to invest and we must plan for retirement. We also need a fund that we have immediate access to in case of an emergency but owning sufficient life insurance coverage certainly frees up some of the cash that would need to be saved for important needs after death.
Regardless of the type of policy you choose to buy, term or whole life, you are taking care of these things at a cost of just a few cents on the dollar. The least costly way to go is term insurance. There are several types of term life insurance policies. The most popular are the level term policies…5 year term, 10 year term, 15 year term, 20 year term, 25 year term and 30 year term. There are also variations of whole life…modified whole life, graded premium whole life and variable life.
Here is some information on term life:
Here is information on Whole life: