"But, why do I actually need life insurance?"
Updated: Feb 3, 2021
Life insurance, critical illness insurance and disability insurance can sometimes seem like a waste of money, a rip off, or it might just fall to the bottom of your priorities because things come up, we get it. But, there are reasons to think about it right now.
1. It's Cheap
Depending on the type of life insurance you choose to get, it can be relatively cheap. This is in contrast to the extremely expensive increases that premiums rise to when you wait 20 years.
Term insurance is cheap. It's comparable to buying a pack of beers.
You pay a set amount each year for 20 or 30 years for a guaranteed benefit. Plus, you're locking in a rate and locking in your health. Therefore, you never have to worry about your health playing a factor in your insurance ever again.
2. Employer life insurance isn't enough
If you think work coverage is enough, keep in mind that the policy might pay one (maybe two if you're lucky) year's salary at most to your beneficiary.
Plus, what is even scarier is that you might not be working at this same job in a few years. You take the risk of becoming uninsurable and having increased rates if you don't have a personal insurance policy.
3. Generate cash value
While term policies are cheaper, looking at more permanent options of life insurance can pay off quicker.
There are a few great things about permanent life insurance but one of the main selling features is the built in savings.
This type of policy builds and grows tax free and allows you to accumulate a cash value. You are able to borrow against the cash value when you need it most. You could use it for a downpayment on a house, or an emergency later on.
You have the time to accumulate a good amount of savings if you go down this road.
Life insurance will only get more expensive the longer you put it off.
Contact us to learn more.