I’m the first one to admit that insurance as a subject in general is pretty dull. You can say that comparing insurance quotes is anything but an exciting task. Despite the fact that insurance is dull, we all need some form of insurance – particularly life insurance. Up until a few years ago, I used to think that having life insurance was something that only parents, married couples or elderly had. This thinking was likely due to the fact that my parents got their first life insurance policy in their early forties. Sounds kind of late, but as new immigrants to Canada, they were well behind the ball on the ins-and-outs of life insurance.
Today I realize that having life insurance is more than just having an insurance policy, but rather it’s become a vital tool that’s become part of planning for a healthy financial future. After all the main goal behind having a life insurance policy is that in case anything happens, your loved ones will be taken care in case anything happens to the insured.
But obtaining a life insurance is the easy part, knowing what type of insurance product you’re purchasing is the challenge. Thankfully you can find a knowledgeable insurance agent to help you find a life insurance product that suits your needs. But, who do you trust? Maybe what’s being pitched to you is not what you actually need.
Even though I can’t recommend who you should trust, I’d highly suggest to ask around within your circle and read around before signing on the dotted line. But for the purpose of this post, here’s why I’d recommend you get life insurance.
Benefits of Having Life Insurance
The benefits of owning a life insurance policy are immense, but even with all the upside, you need to take your time in selecting the right life insurance policy. Selecting the right policy is up to you, and as mentioned above, by simply choosing to work with a honourable and reliable insurance agent, you can obtain the policy you need. But that’s a given. Here are three benefits of having a life insurance policy:
Source of income – Generally anytime someone passes in a family, one income source is lost. By having a life insurance policy, funds are provided in order to supplement the lost income by deceased. And by having a steady income coming in, this will allow the family to continue living a somewhat normal life – at least from a financial point of view.
Funeral cost coverage – If you’ve ever been through it first hand or know someone close who has been through the funeral process, you likely know that the cost of a funeral can quickly add up. Having a life insurance policy will cover such final expenses.
Future Expenses – Having a life insurance policy will allow the beneficiary to cover ongoing financial commitments such as tuition payments for the kids, the mortgage or car payments. Simply put, it’s a form of security to continue to lead a normal life.
Shopping around for life insurance is not the most exciting process, but it is a process that needs to take place. Even though many don’t treat life insurance as a necessity, financial advisors and experts alike are the first ones to express the importance of having a life insurance policy.