There are obviously more than 10 reasons to buy life insurance, it is like asking for the reasons you need air, there are a lot of them. Just in this post, we will systematically select the 10 most important of them.
Life insurance is one everyone needs but unfortunately far too few people actually have it. Nobody knows how their life will turn out in the nearest future. It can completely change for the best or worst.
If you are one of those that think they don’t need life insurance or that buying life insurance is a waste of resources, then you should have to rethink.
It’s easy to purchase life insurance when you’re young and relatively healthy. But the longer you wait, the greater the chances of something happening before you get yourself covered.
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Death is most likely going to be faced by us all, and then we usually do not always know the time it comes, so preparing for any eventuality of such will be not just wise but worth it.
Remember the money gotten from your life insurance policy will address a number of fundamental needs for your surviving family when you are no more. Buying life insurance is one of the most important financial decisions anyone will take, but sadly only a very low percentage has.
Life insurance helps you calculate your Human Life Value (HLV) since you may not be able to measure your life’s value on a weighing scale. This is important because it helps to understand how much money you’d require to secure the lives of your dependents with a term life insurance
We have discovered the importance of insurance which is why we have taken out this time to compile these 10 reasons to buy life insurance and more but first let us know what insurance is generally
What Is An Insurance?
Wikipedia defines insurance as a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss.
An insurance policy is a contract between an individual and an insurance company under which contract, the individual pays regularly a sum of money as premiums to the insurer and in any guess of death or unfortunate circumstances like accident, death, or house damage, the company pays the individual or those who depended on them like the family members, children or a particular person chosen to be paid.
In other words, Insurance is a contract of reimbursement. A systematic way of managing financial risk. Getting insurance is getting solid protection against unexpected financial losses.
The insurance company pays you or people who were dependent on you in a case where you are no more something bad happens to you.
Before getting to find out the 10 reasons to buy life insurance, let’s briefly look at the types of insurance
Types Of Insurance
In this list, we will categorize them into individual and business insurance;
Types of Individual Insurance
- Automobile Insurance
- Other Liability Insurance
- Life Insurance
- Health Insurance
- Disability Insurance
- Homeowner’s Insurance
The automobile insurance policy covers liability for the car’s bodily damages, property damage, medical damage or loss of the car itself, and attorneys’ fees when there is a lawsuit that concerns the car.
Automobile insurance is the most commonly held type of insurance.
Other Liability Insurance
Other liability insurance covers many types of risks which could be a slip on the walk, an untrue word probably spoken in anger, failure to act that causes property damage, or personal injury to others. The other liability insurance takes care of all these fixes
It is the kind of insurance that provides for your family or other named beneficiaries upon the death of the insured. Life insurance has two major types which are: Term Insurance and Whole Life Insurance.
The term insurance provides coverage only during the term of the policy and pays off only on the insured’s death while the whole-life insurance provides savings that can be collected before the death of the insured.
Health insurance covers hospitalization bills, costs incurred on visits to the doctor’s office, and the purchase of prescribed medicines.
Most employers provide this for their employees. Usually, the policy will contain a regular deductible amount and the insurer will not make payments until after reaching the deductible amount.
Disability Insurance otherwise known as DI or disability income insurance is a form of insurance that insures a sum of the employee’s income so that when they are disabled by an ailment or accident and cannot work they can still be paid.
A homeowner’s insurance covers the destruction or loss of a home or assets in the home due to fire, theft, and any other kind of peril. In the case where any of these events occurs, the insured home will be rebuilt or assets replaced.
Where property values drop significantly, the owner of a home might find savings in reducing the policy’s insured amount.
Related: Why Is It Important To Buy Life Insurance – 10 Reasons To Consider
Types of Business Insurance
- Malpractice Insurance
- Business Interruption Insurance
- Business Liability Insurance
- Workers’ Compensation
- Automobile Insurance
- Property Insurance
Professionals such as lawyers, mechanics, or doctors often purchase malpractice insurance to protect against claims made by angry or dissatisfied patients or clients.
Business Interruption Insurance
This type of insurance replaces income lost in the event that business is halted due to loss or damage A company can purchase insurance that will cover loss of earnings if the business operations are interrupted in by loss of power, unavailability of raw material, or strike.
Business Liability Insurance
Liability insurance provides an insured party with protection against claims resulting from injuries and damage to other people or property.
Business liability insurance protects the financial interests of business owners in cases when they face formal lawsuits or any third-party claims.
Workers’ compensation is employer insurance that pays benefits to workers who are injured or become disabled on the job.
Most businesses insure against injury to workers on the job, although some may do this through self-insurance by setting aside certain funds for these contingencies.
Automobile insurance covers vehicles insured by businesses. Businesses should maintain at least a minimum automobile insurance policy on the vehicles to cover the vehicle’s general liability.
Property insurance protects and covers business property. It is financially unwise for a business to leave the business property unprotected. The insurance covers permanent fixtures, machinery, inventory, etc.
Related: 5 Best Life Insurance Companies That Pay Out – How Payout Works
10 Reasons To Buy Life Insurance
Other than these 10 reasons to buy life insurance mentioned below, there are several other reasons you can find or even discover as you begin your insurance journey.
1. It helps you save on taxes, you will get tax deductions on the premiums you pay.
2. To provide funds for your family to pay off a home mortgage when you are not around anymore?
3. To Protect Your Family in the case where you lose your job, your family will be taken care of
4. If you run your own company insurance can help take care of your business.
5. Depending on the insurance plan you choose, you can invest amounts that can eventually help you purchase a home or start up that business.
6. To Provide Peace of Mind and financial safety for Your Loved Ones in Uncertain Financial Times
7. You can customize your plan to include any personal health problems or major illnesses. This offers you and your family greater protection.
8. Any loan or debt that wasn’t paid during your lifetime can be paid with your insurance money
9. covers your Children’s complete education expenses if you are not available to provide it
10. To Protect a Business by Buying a Deceased Partner’s Shares from his heirs and continue running the business without having to sell the company off
- Related: 5 Best Life Insurance Companies That Pay Out – How Payout Works
- Related: Why Is It Important To Buy Life Insurance – 10 Reasons To Consider
- Related: How Much Impact Does Wealth Have on Insurance
There you have it, 10 Reasons To Buy Life Insurance
In this post of 10 Reasons To Buy Life Insurance, you will understand what insurance is, the types of insurance, and the benefits of insurance.
Just one insurance can save both you and your loved one a lifetime of struggles
If you have found interest in getting an insurance, I will suggest you carry out more research on insurance and their types and what type best suits you
Feel free to drop your comments or questions in the comment box below