Most people agree that car insurance and homeowners insurance are requirements, not luxuries. But when it comes time to increase their financial safety net, they start to question themselves, asking: “Is life insurance worth it?”
A life insurance plan is more than just a “nice to have” addition to your insurance coverage. For most people, it’s essential for providing peace of mind when—not if—the worst happens.
If you’re wondering whether you should buy life insurance, the answer is almost always “Yes!” Here are just a few reasons why you should take the step toward your long-term financial stability.
1. Life Insurance Protects Your Family
By its very design, life insurance provides your family with financial reassurance due to your passing. As long as you keep your policy in good standing by paying your premiums, your beneficiaries will receive a lump sum on your death.
This amount can be used to:
- Pay off your house
- Pay off your outstanding debts
- Pay for your children’s tuition
- Replace your salary
- Help your spouse find a new career
- Or any combination of these
Even if you are a stay-at-home spouse, think of the financial toll that your death would bring to the family. Life insurance is not just for certain people; it’s a way to provide financial security to those you love most.
2. Life Insurance Is Affordable
According to a 2020 study, 65% of Americans said they didn’t have life insurance because it was “too expensive.” But the truth is that life insurance is often extremely affordable!
The average premium payments for a 40-year-old purchasing a 20-year $500,000 term life policy are just $26/month. That’s roughly $6,000 over the life of the policy.
When you think about the amount you’re putting into your life insurance policy against the financial protection you’re receiving, the benefits of life insurance are difficult to ignore. The main lesson to be learned here: don’t let life insurance costs keep you from protecting your family!
3. Life Insurance Benefits Are Tax-Free
The death benefit your family will receive is completely tax-free, allowing them to use every penny.
For a family wracked with grief and confusion, this can be a financial (and emotional) lifesaver.
4. Life Insurance Can Have Cash Value
Certain policies carry a cash value component, which adds an additional layer of financial security.
Whole and universal life insurance can both come with a cash value component, which grows with every payment you make. Depending on your policy, you may be able to borrow against this cash value or even receive a portion as an annual dividend.
In most cases, you will receive the full cash value if you cancel your life insurance policy (which isn’t the case with term life insurance).
Instead of just buying a policy and blindly paying a premium, you can allow your policy to grow and use that cash for your betterment in the future.
5. Life Insurance Is Customizable
No two families (or insurance policies) are alike; that’s why there are many different types of life insurance.
Talking to an independent insurance agent is the best way to find the policy that’s best for you. They can also layer life insurance policies to build custom coverage that meets all of your needs.
For example, some people take out whole life insurance with a high premium, overpay into the policy, and borrow against the resulting cash value. Others start out with a straightforward term life policy, then purchase guaranteed life insurance later in love to add to their overall value.
Protect Your Family Today
Life insurance should never be an optional expense. In fact, your long-term financial stability depends on it.
No matter your concerns, goals, or budget, we can connect you with a life insurance policy that provides you and your family with peace of mind. Only after we have discussed your individual needs will we scour the market for life insurance quotes from a variety of carriers.
Don’t let fear of the future keep you from setting up a safety net for those you love most. Contact DSI today for a free quote.