Why is life insurance so important? Well, there are several reasons why. Who do you think is going to
pay for your final expenses when you die? What are your intentions? Here are a few reasons why you
MUST get some type of life insurance coverage for yourself as soon as possible.
# 1. Your life insurance premiums will be a lot less if you are still young. Monthly premiums for someone
in their twenties will be quite a bit less than someone that’s in their forties or fifties. The reason for this
is because of the average mortality rate for that particular age group. Example, a person in their twenties
is much less likely to pass away from natural causes than a person in their forties, where more health
issues become statistically more common. If you get a “fixed rate” insurance policy then your insurance
premiums will never go up. This is possible with certain types of “Term Life Insurance” policies.
# 2. Another reason to buy life insurance at an early age is to use at as a “nest egg” for your future. This
can be accomplished by purchasing a “Whole Life” policy or a variation of Whole life insurance. Whole
life insurance policies cover you for your “whole” life and will remain in force as long as you continue to
make the premium payments or you reach the age of one hundred years, whichever comes first. A whole
life policy accrues what’s known as a “cash value”. This is money that you may borrow against if you
need it in the future. This is how this works. You pay your insurance premiums and as you do a portion
of it is used to pay for your insurance policy, while the rest is used to create your nest egg or cash value.
# 3. The third reason you must have life insurance is because, unless you have assets or cash put away,
your next of kin will be liable for your final expenses if you die. This happens frequently and it’s quite
a burden on those family members left behind. Not only do they have to deal with the grief associated
with their loss, but they’re now strapped with unexpected funeral expenses. Funeral expenses average
between six and ten thousand dollars nowadays. This is assuming that your family buries you in a
cemetary in a casket. A less expensive option for them is cremation, but even this method has a
“high end” and “low end”. The options that your family will have with cremation is to pay a good sum
of money for a respectable receptacle for your burnt remains (an urn) or you may be delivered to them
in a cardboard box, if they are unable to afford a decent container.
# 4. Your family, if they’re unable to pay for your funeral outright, will be legally liable for making the
payments to the funeral home that took care of your final needs. If they are unable to make the payments
for any reason then they could be taken to court and have a “judgement” placed against them. This
could affect their credit rating and potentially cause them to have to sell or forfeit any assets that they
may have in order to satisfy YOUR debt. It seems very unfair, but it happens all of the time.
# 5. If you don’t have insurance then you may have to forfeit your final wishes if you have a will. People
can’t just write a final “Will and Testimony” and expect for it to be honored without arranging for any
special wishes to be paid for. If you don’t provide funds for these wishes to paid with then you will be
at the mercy of whoever gets the honor of paying your bills. The odds are not good that someone that
gets handed an unexpected debt, that could have been avoided except for your negligence, would be
very compassionate toward your final wishes.
The bottom line is that it doesn’t matter what age you are. You are responsible for your own final
arrangements and you need to step up and do your family, and yourself if you’re younger, a big favor
and get some type of life insurance coverage right now. Don’t put it off any longer as it may be too late