Protecting Your Family: Why You Should Get Life Insurance

Protecting your family through life insurance is a great idea no matter what your financial or marital status is. It’s such a tried-and-true method that it accounts for nearly one-half of a $1.276 trillion industry (about $624 billion, according to the Insurance Information Institute). 

But that’s economics talking. Insurance is more personal for millions of Americans, and they tend to purchase it for the following reasons.

Never before has it been easier for consumers to qualify for coverage.  Even for those who live with a type of Diabetes.  Melissa Thompson of Diabetes365.org mentions ” life insurance underwriting guidelines have never been more lenient for people who have chronic illnesses, such as Diabetes.  In the past, life insurance with diabetes was difficult to obtain, as companies simply would view you as too high of a risk to insure.”

1. Safeguard Against Debts and Expenses

The first reason people often look into life insurance is that it can act as a safety net against all the debts and expenses that a family can rack up as they make home purchases, incur credit card debt, and bring children into the mix. While you’ll want to consider getting insured beyond the basic amount that you owe, it helps to know that your loved ones won’t face crushing debt should anything happen to you.

2. To Insure Against Loss of Income

Some policies like term life insurance can be purchased very cheaply to aid in replacing the loss of income over one’s lifetime. Think about it. You start a family with your spouse and hope to have them with you for the next 60 years.

Unfortunately, you or your spouse dies five years in, and the family ends up missing 55 years of earning potential. This is just an example, but it brings to mind how you should think about insurance as you go beyond the basic coverage. 

3. As a Hedge Against Income Fluctuation

Whether purchasing term life or whole life insurance, it’s a nice safety net to have when your income fluctuates. Freelancers, for example, can find it difficult to commit to a regular savings schedule. 

That’s because the nature of freelance often means unpredictable earnings. Purchasing affordable insurance, however, gives the freelancer some peace of mind against this income fluctuation. They know that as long as they keep paying the premiums, then their loved ones will be taken care of regardless of what’s in the retirement accounts. 

4. Showing Your Loved Ones You Love Them

As you search for price quotes among life insurance companies, never lose sight of the real reason you’re doing it. It’s an expression of love.

You’re telling the people close to you that they mean something to you. The message: you will go on loving them even if you’re not here physically to do so. 

5. Peace of Mind Over Health Concerns

Another way that a life insurance policy can help your life is if you have concerns over chronic health issues. Maybe you have developed an issue or something that runs in your family is likely to manifest for you at some point. It’s beneficial to know that your family will have enough money coming in should you be struck down by a health issue.

6. To Leave a Legacy

The last reason to budget life insurance into your monthly expenses is that it creates a legacy for your wife and children. You will be remembered as the person who provided for them even when you were no longer physically able to do so. That contribution will positively reflect on your life to your spouse, children, and other loved ones.

There Is No Better Way of Protecting Your Family Than Buying Life Insurance

Protecting your family by purchasing life insurance is a great way to show you care. It’s also an affordable way to hedge against loss of income, income fluctuation, and ongoing expenses. 

Consider buying a term-life or whole-life policy if you have financial anxieties. For more financial tips and information, check out some of our additional posts!