This COVID-19 pandemic has caused a lot of people to be quite anxious about their health and their lives. Because of that, many have been opting to get life insurance to protect their family or their business financial future. Why is having this type of insurance so important today? What will be the consequences if you don’t have it? Here are four reasons why obtaining life insurance is so important today.
Protection for your family
If you have children, it’s beneficial that you start planning for them. Understandably, death is a topic that we all don’t like to discuss. It’s considered a topic we don’t like to even think about. But as long as we are living in this world, we have to plan financially for the inevitable to happen.
Failing to plan for your children in the event you pass away is a high cost to your children’s future. A life insurance policy is a good source of assistance to them when they are adults.
Discounted Policies Buying Early
Life insurance is inexpensive when you buy it at a young age. That’s because young people are considered a low risk to the insurance company. Age and your general health are major components in the determination of your premium amount. As a policyholder, you would be saving quite a bit of money over the life of your policy.
However, if you are older with serious health problems, the premiums will naturally be higher. I just recently read a forum post about how life insurance policies are being impacted by COVID-19. It mentioned that if you don’t have a policy already and planning to buy one, insurers have already revised the premiums with an increase of more than 30%. However, if you already have a policy in place, your claim is payable for the death due to the virus.
Elimination of Debt
Most households have some surplus debt around. When a family member who is considered the breadwinner passes away, that could be devasting to a family without any income stability to pay those off. Life insurance alleviates those worries of paying down debts incurred by the deceased. Your mortgage payments are good examples of debt that life insurance could cover after you’re gone.
Peace of Mind
Above all else, you will have instant peace of mind that your loved ones are protected. If you are the main source of income for your family, you want to feel secure that your loved ones will be fine after you are gone. It can also reduce financial stress in the present because you won’t have to do a lot of saving after you are gone.
Having a life insurance policy in place is the much-needed security your family needs. For more information on the benefits of having one, check out the article, “10 Reasons You Should Consider a Life Insurance Plan.” As always, leave a comment, like, or share this article.
