Reasons People Buy Life Insurance
Most of us know that life insurance helps provide overall peace of mind, but have you considered the specific reasons why you personally may need life insurance? It’s practical and wise to anticipate how your loved ones will pay the bills when you pass away. Sometimes, it’s the combination of whole and/or term life insurance benefits that can help families cover daily expenses, medical bills, funeral costs and more.
Life insurance can help with funeral expenses and more…
No one wants their family to experience hardship in paying their burial expenses. This may be one reason why you’d consider adding a small supplemental life insurance policy — just for an amount that would cover those final expenses. Or, even if you already have an employer-sponsored life insurance policy, maybe its face value is a little too low for comfort, when compared to your family’s needs. Additionally, some people purchase life insurance protection when an existing insurance term policy is ending or has already expired.
Life insurance can help make your family’s future more secure
Regardless of your age or circumstances, purchasing a new or supplemental life insurance policy can provide your family with a measure of financial protection to help:
- replace income for an interim period of time that would be lost if you, your spouse or your partner pass away.
- pay your mortgage, rent or daily living expenses.
- cover funeral costs, medical bills or other debts left behind.
Life insurance can be affordable and easy to find
If you’ve thought of life insurance as an extra monthly expense that you can’t afford to add, maybe it’s time to reconsider. Remember that the entire face value of a life insurance policy can pay out to your beneficiaries, generally tax-free.
Why buy life insurance
Dennis, a 60-year-old retired construction worker, illustrates one example of a typical reason to purchase life insurance. Recently divorced and remarried, he didn’t renew his term life policy when it ended, because his children were self-supporting. But Dennis and his new wife, Joan, just bought a small townhome together. So, to help Joan pay the mortgage if he passes away first, Dennis quickly and easily purchased a whole life insurance policy that will pay $50,000 to Joan when he dies. He chose an affordable life insurance policy with no medical exam and didn’t even have to give a blood sample.
Then there’s Heather, a 54-year-old teacher and a widow. She supports herself and her daughter, Tina, now in college. Heather and Tina are comfortably able to live in their house because Heather’s husband, who had a whole life insurance policy, also purchased a $10,000 term life policy for final expenses.
Because of his foresight, Heather still has the funds to help pay for the mortgage and Tina’s tuition.
Consider your own peace of mind and your family’s needs, and you too may choose to purchase term or whole life insurance. With so many companies offering free information kits and rate quotes — you can easily compare the benefits and find the answers you need.
Information is based on a hypothetical situation. Any resemblance to real persons or situations is purely coincidental.
This article is provided by New York Life Insurance Company for informational purposes only. This article is not intended to provide tax, legal, financial, or accounting advice. Please consult your own professional for advice specific to your circumstances.