Getting a life insurance policy means ensuring you and your family will be taken care of no matter what happens, and it’s better to start early. As mentioned here on Mangus Finance, “Today’s preparation ensures tomorrow’s future,” and you never know for sure what future events may impact your financial stability. While you might be apprehensive at first, especially since the Federal Reserve’s low interest rates have skyrocketed premiums in recent years, you have to think of the bigger picture. Buying a plan now will safeguard your family’s future in more ways than one, and here are just some of the reasons why.
Realistically speaking, even the healthiest people must still prepare for the inevitable. Innovative startup Health IQ states that health-conscious people have a 41% lower mortality rate, and although it’s a significant difference, there are still many cases where even if you live the most healthiest life possible, accidents happen and some diseases are unavoidable. Therefore, it pays to prepare your finances for your own funeral with the help of life insurance because the costs can be high. And the last thing you want to do is burden your family with the costs after you’ve gone.
There are many expensive things to pay for in this regard, from cemetery plots to funeral services. Starting early on means you have more time to save for such an event. In fact, buying a plan while you’re still young may even be more advantageous, as premiums are usually lower for younger people considering they’re relatively less risky to cover.
Financial coverage for your dependents
Insurance writer Mila Araujo highlighted that life insurance plans can be a way to build your wealth through policies that also offer cash values and investments. Even when you’re still alive, you can save up for your childrens’ college tuition fees and inheritance, or ensure that your spouse or partner will be left with significant financial support.
Pay off debts
More often than not, your dependents will inherit your debts once you’ve passed on. To relieve them of this heavy burden, you can purchase a policy that will automatically deal with any posthumous debt, be it from a loan or a credit card. For example, it’s common for many life insurance policies to include mortgage debt coverage in their package to save you the trouble of having to acquire extra mortgage insurance when you buy your own home.
Stability upon retirement
Another common selling point for life insurance is the stability it offers upon retirement. “Life insurance needs to be the foundation of any solid retirement plan if your family is depending upon your retirement income. You can’t invest your way out of an untimely death,” explains finance expert James Meehan. There are multiple ways it can save you money, such as protecting your retirement income and keep your savings intact. However, it bears noting that not everyone’s retirement plans are the same. Some may need a term life insurance while others might prefer a permanent life insurance.
During these trying times when premiums are rising up, it pays to think ahead. Getting a life insurance plan can keep you or your loved ones afloat even under grave circumstances. As morbid as it might be to think about the end, preparing for it early can at least make things easier on the financial side of things.