Life Insurance, Why Buy It?

Learn more about the different types of life insurance and their benefits, and find out how to determine which product is best for your needs.

What is life insurance used for?

The life insurance is important because it protects your family and allows you to leave a non-taxable amount in case of death. It is also used to cover your mortgage and personal loans such as your car loan. In addition, individual life insurance follows you when you retire and are no longer insured by your employer. This insurance will also replace your family’s income during the period when they have fewer resources and allow them to maintain their standard of living.

How to choose your life insurance?

Once you understand the importance of purchasing a life insurance policy, you need to choose it well. To do this, you must question yourself in order to determine your needs and thus purchase a product that suits your family and insurance premiums in line with your budget. A financial security advisor can guide you in your thinking.

There are three main questions you need to ask yourself to know what type of life insurance is best for you.

1. Family and professional situation

First of all, your need for insurance will be influenced by the following elements: your family situation, your age, your state of health and whether you are a homeowner or self-employed.

Whether you are single or in a relationship, it is important to purchase life insurance. When you die, your loved ones will have to pay the funeral expenses and meet your various financial responsibilities such as your debts. If you have purchased insurance, your debts will not be a burden on your family members.

In addition, your loved ones may also have to take on some of your common responsibilities, which include expenses such as your credit card fees, your rent, your car payment, your mortgage payment, your student debt. Or others. If you have children, life insurance will replace the loss of income of one of the parents and thus provide for the needs of the children.

The life insurance is also an effective financial tool to protect your business. It will allow you to ensure your safety and that of your loved ones in the event of unfortunate events.

If you start your business with a partner and the partner dies prematurely, will you have the cash to buy back their shares and pursue your dream? An unfortunate event like this could have major consequences for your business. It is therefore important to think about it now. If you don’t have protection, getting it will allow you to take into account your needs as a self-employed worker and avoid possible financial worries for your family.

2. Life goals

Your personal, family and professional life goals will also be decisive in choosing life insurance. For example, do you want children? What are your career and income goals? Or, at what age do you want to retire?

This will help you assess the amount of life insurance you will need to purchase to protect your loved ones in the event of death.

3. Type of protection

You’ve thought about your situation and your life goals, and all that’s left is to decide which type of life insurance is right for you.

For example, you might ask yourself if you need short-term or long-term protection or if you want protections that generate cash and have cash values ​​that will allow you to complete projects, etc.

Once you have answered these questions, you will be well equipped to choose the life insurance that is best for you.

A final expense leads company will be able to guide you and answer all of these questions and, depending on your answers, they can direct you to the life insurance that suits your needs.

In conclusion…

The important thing is to choose the life insurance that suits your budget and your needs. Over the years, your needs, your family situation and your life goals will change. At that point, it will always be time for you to reassess the type of insurance that is right for you to ensure that you are covered properly.

Also remember that you are never too young to purchase life insurance, since the younger you are, the lower the cost of your premium will be. Know that the role of the financial security advisor is to guide you in your thinking, according to your reality and your objectives.