Purchasing insurance policies is a process that is often rife with confusion. The buyer knows they need some form of the insurance, but they aren’t sure about the bells and whistles available to them. For example, when investing in car insurance, the purchaser knows he or she wants collision and comprehensive coverage—but what about roadside assistance?
When it comes to life insurance, the uncertainties increase. Does the purchaser want term or whole life? Does the individual even need life insurance? The questions can cause people to delay and put off investing in a life insurance policy altogether. While there are several factors that will determine what kind of life insurance policy will work best for the individual, there are several reasons why life insurance policies are vital.
- To pay off debts. Many individuals erroneously believe they don’t need life insurance if they aren’t married or don’t have children. However, debts don’t vanish upon an individual’s death. The remaining family will have to take care of the individual’s student loans, mortgages, car loans, etc. A life insurance policy would help cover those debts.
- To provide for loved ones. Most people invest in life insurance policies to help pay for funeral expenses and provide financial relief for the lost income. If the policyholder is the primary breadwinner, having a life insurance policy can help their spouse or children navigate the months following their passing without worrying about how they will pay the bills.
- Financial security for children. Similar to the last point, a life insurance policy can provide for the children’s future. For example, a policyholder may want to finance their children’s education, pay for weddings, or support their entrepreneurial efforts. Life insurance can ensure this is still possible in the event of the policyholder’s passing.
- To provide peace of mind. Many people would rather not dwell on their mortality, but not preparing for it can leave loved ones in a precarious position. Money can’t replace the individual, but it can allow the policyholder to know their family will be taken care of once they’re gone.
Life insurance, above all else, protects loved ones from financial uncertainty. It allows them to navigate the time after the policyholder’s passing without worrying about bills, debts, and other monetary concerns. To learn more about life insurance, contact the experts at The Reilly Company.