6 Reasons the Average Person Always Needs Life Insurance

It is not hard to make the case why anytime is a good time to buy Life Insurance.

Life Insurance isn’t something you want to put off thinking you’ll never need it. Also remember you have to qualify for it with the condition of your health In addition to protecting your loved ones financially, you also get peace of mind knowing that you won’t leave them without resources. The average person needs Life Insurance because:

They may have a mortgage or car loan that comes due immediately after their death.
Their family may have to sell assets such as a home or car to pay off debts.

Life Insurance is an important tool that helps you plan for the future. Read on to learn more about this topic!

When you die or become disabled, your family members will often need financial support. Unfortunately, some people don’t plan ahead and so they don’t have adequate Life Insurance coverage and cannot qualify for it or is too expensive because of age and health condition. If you don’t have Life Insurance, then your spouse or children might end up having to pay off debts or other obligations instead. This can be stressful for them and even costly.

You should have Life Insurance. Whether your job allows it or not, you should always have some form of Life Insurance. This is due to the fact that if something were to happen to you, your family would receive financial assistance tax-free from your life insurance policy. Most people do not realize this until after they are gone. If you are healthy, then you probably do not need much coverage. However, if you have any pre-existing conditions, then you may want to consider purchasing additional coverage now.

1. Protection

The primary purpose of buying Life Insurance is peace of mind through protection. If something happened to you and you were not there to provide for your family, they would receive a lump sum of money. The coronavirus reminded us none of us are immune to illness, disease and death.

Lump Sum Benefit

If you happen to get critically ill and had added critical illness insurance rider to your life policy. Then 30 days after your doctor declares you ill from cancer, stroke or heart attack you will get the amount of coverage you purchased in the rider in cash tax-free. Some employee benefits have this rider as part of the benefit package.

2. Building cash value

Whole Life Insurance participating steadily builds cash value over time. Most people have difficultly saving for the future. There is always a demand on your paycheck. Life Insurance not only provides protection, it becomes its own nest egg for when you need cash.

Building Wealth

A Life Insurance policy is a good investment because you know that your family will be taken care of if something happens to you. You can also use this money for other things such as paying off debt. Having a Life Insurance Policy is an important step toward building wealth and retirement savings.

3. Growth regardless of stock market volatility

After a bull market lasting 10+ years, some people might have thought the stock market only goes in one direction, up. In 2020, they learned “Money talks. It says goodbye.” Many people might be thinking they took on more risk than they thought. Insurance produces some products that grow regardless of market volatility. Other products allow you to share in stock market performance while enjoying principal protection.

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4. Emergency cash

Many people invest in the stock market. Recent events might find them short of cash yet selling their investments might mean taking a loss. Once insurance products have accumulated some cash value, many products allow the policy holder to borrow against that amount. It is a useful option to have.

Can be Used to Pay for Immediate Expenses

The emergency cash is money that can be used when a bank is closed or if your credit card company has closed your account. It is not stored at banks but rather kept electronically and it is accessible whenever the need arises. This is what would happen if someone stole your car or if there was an emergency medical procedure needed. It could be any number of situations. If you are ever in such a situation, it’s best to have this item. You should always try to avoid getting into debt, but if you do get into debt, having emergency cash on hand will help you out.

5. Future income

Most people realize they are responsible for providing for their own retirement. They need to save towards that goal. After collecting a monthly paycheck for decades, many people want that to continue in retirement. People want the stability of knowing they will not outlive their assets, that they will always have income. Insurance products like annuities can provide lifetime income in retirement.

Long-Lasting Investments

Having an insurance policy is one of the most significant and long-lasting investments you can make. You can cover mortgage payment, debts, leave a gift
to a favorite charity, pay off final expenses, or even know that your family will be taken care of if something happens to you.

6. After I have saved some money, then I will invest

The financial services industry primarily invests lump sums. The insurance industry does a great job working with cash flow. Many products can be purchased with monthly or quarterly contributions. You do not have to wait for you can start with $25, $50 or $100 a month depending on your situation. In 10 years, it will amaze you what amount has accumulated. In 20 years, it will be more amazing.

Peace of Mind

If you are young and healthy, then you should look into having some type of insurance. Even if you are old and unhealthy, you should still have some sort of coverage. When you are older, your health may deteriorate faster than normal. In addition, you may develop certain diseases that are expensive to treat. Having some type of insurance will provide you with peace of mind.

There is a place for insurance in most people’s lives. Sometimes, they need to be reminded.

Learn more about Life Insurance

Life Insurance available in Kitchener, Waterloo, Guelph, Milton, Mississauga, Toronto, Elora, Elmira, Listowel, Mitchell, Stratford, New Hamburg, Brantford, Hamilton, Burlington, Fergus, Oakville, and Cambridge area.