Imagine a world where no one died and everyone lived forever, in perfect harmony. No disputes, no global threats and peace. We can all dream and it would be nice to see these things happen in our life times. Life expectancy is getting longer and it won’t be long until most people expect to see their 100th birthday. However all this comes at a cost, most countries are now having to raise there retirement age as people live longer there is less money being paid into the system to pay for the benefits of the elderly. Sadly most of us currently will not see our 100th birthday and the purpose of this article is to give you good reasons to take out life insurance to provide for your loved ones in the event that you are not around. Therefore below are 7 reasons for affordable life insurance.
1 – Income replacement for dependants
The primary reason most people take out life insurance is to provide replacement income in the event of the death of the main wage earner. Bills and debts still have to be paid and to remove these liabilities is the primary objective of most people taking out life insurance.
2 – Debt repayment
On death, any outstanding loans such as auto loans or mortgages outstanding still remain in effect unless they are covered by an assigned life policy or separate insurance. These debts can leave an unbearable burden on your family in event of your death and with no protection in force.
3 – Final expenses
The average cost of a funeral is constantly rising. Currently it is between $7,000 to $10,000. On top of this there may also be probate costs as well as administration and sometimes medical costs that need to be paid.
4 – Provide Inheritance
It is a common objective for most people to be able to leave a lump sum for their loved ones. This may be in the form of a bequeath of to provide the money to pay for loved ones education or weddings.
5 – Pay federal / state death taxes
Sadly many people are forced to sell homes and precious items to cover the taxes due on an estate. These can be provided for through the use of affordable life insurance policy. Changes in federal tax rules have lessened the impact of this for most peoples. But some states have modified their state tax rules to take up this shortfall.
6 – Create a source of wealth
For many, wealth has been handed down over generations. Some has been at the result of hard work and enterprise. For others it has been through life insurance. By providing life insurance to your heirs you are giving them a boost, a start in a new venture or some funds to provide for education. Wealth is not always about money but what is created through education.
7 – Make charitable donations
Many charities only survive though the generous donations they receive from many donors. These are typically made out through wills where the source of funds can be from a life insurance policy.
It is important to never forget that how your loved ones futures can be protected though the use of a simple life insurance policy. They will not be burdened with debt and see through the dreams of education of making their own ways in life. Your legacy as many people now view it.