Is Life Insurance the Right Investment for You?

I must admit this question did not cross my mind for 34 years. When my daughter entered the world in 2015 it was certainly not the first thing I was thinking about then either. It was a busy era and there is never any time for anything outside of the occasional nap and poor food choice- Let alone I was half in zombie mode and half on new baby euphoria.

But slowly the thought started settling in and the more I realized that with this new life comes a lot of responsibility. Not just to raise her right but to make sure she is always left in the right place (well as long as I can control that right?).

For many people, life insurance is one of the most important investments they make throughout their life. As people become adults, get married, and start families and businesses of their own, the realities of life and death begin to set in. Those of us lucky enough always ask the question, “what happens to all of this when I’m gone?” while for many, it comes too late.

You need to protect your family when you aren’t there, and life insurance is the investment to do that. No one wants to leave their loved ones in poverty and this is literally your insurance policy against doing just that (literally). If you wouldn’t drive a new car without car insurance, why take the risk of leaving those you love with untold debt if something were to happen to you? Securing a life insurance plan is indispensable for both you and them, as well as a fundamental investment in any solid financial plan. Give yourself peace of mind knowing that your family, your assets, and even your business are all protected. A smart investment pays out well, and below are some of the most rewarding reasons why life insurance will pay out better than any other.

Mortgage Protection

For most people, their home is both their largest asset and their most expensive financial responsibility throughout life. When it can take 20 or more years to finish paying off such an investment, there is a greater chance of leaving behind an outstanding mortgage for your loved ones to deal with without you. This threat alone is a reason why many to invest in life insurance. Depending on the type of life insurance plan and the term you choose, many plans will be able to pay off your remaining mortgage balance. Provided you select a plan that matches both the amount of your mortgage and the term that is left on those property payments, your insurance can take that monumental stress away from you and your family.

Income Replacement

If you are married, you may understand the importance of something like this. When two people live together and plan a life together, this is often based on the future of both of your incomes combined. What would happen to your spouse’s future and their standard of living should something happen to you? Such a question becomes even more complex when children become part of the mix, but whatever the circumstances, the life insurance plan you choose can help take up this responsibility and supplement the survivor’s income.

College Fund & Other Child Expenses

Speaking of children, let’s talk about one of the largest investments that people think about when it comes to their kids: college. College tuitions are often extraordinarily expensive and continue to rise, the reason behind the growing student debt crisis our country faces. Experiencing the death of a parent is tragic enough, your children’s education and financial future shouldn’t need to be crippled or compromised too. A proper life insurance plan can help ensure that your family has the means to fund a college education.

Estate Taxes

To go along with mortgage protection, estate taxes are another prominent reason why people choose to invest in life insurance in general. These taxes can often be very steep and are required to be paid by the surviving family before any money or assets can be distributed to them. Therefore having the insurance to pay them, especially if there are plans to sell an estate after a death, should be an integral part of you and your family’s financial plan.

Final Expenses

Funeral, burial and medical bills are often the first thing people think of when hearing “life insurance.” As we’ve looked at, these are far from the only or the most important benefits of a life insurance plan, but they are still an important thing to think about. These services can quickly add up and become a large fiscal burden on your family. At a time of passing and great stress and grief, they shouldn’t need to worry about something like this. The right term insurance plan will take care of it and help ease this process as much as possible, while also usually being the most affordable way to acquire a substantial death benefit for your family.

Conclusion:

Granted not the easiest topic of conversation, I have personally found life insurance to be a truly worthy investment and one I can’t imagine not putting a little something aside for. There are great life insurance plans for young adults to those later in life and it never hurts to have something to leave behind. I’m sure that I’ve spent that monthly cost easily on food or entertainment that only lasted minutes. Life Insurance can mean all the difference in the world to my daughter should anything happen to me. I’ll choose that option.