Life Insurance: Do I Really Need it?

Life can throw surprises, many that can be hard to bear. One such shocking surprise is sudden illness, incapacitation or death. Such encounters can put those who depend on us in a state of unending predicaments. One of the best ways to safeguard the lives of your dependents is by purchasing life insurance.


No matter what your financial status, everyone can benefit from life insurance. Regardless of this fact, we tend to overlook it for several reasons;

  • We don’t want to imagine death
  • There is no law that requires us to buy it
  • We don’t see its value right away
  • We get offended putting our lives into monetary value

Despite our hesitations, Life Insurance is worth the investment for as explained below:

It Provides Peace of Mind

Knowing that in case of untimely death, your loved ones and family will be in financial safety is the best thing in life. Life insurance replaces your income in case of death especially if your family solely depend on you. By taking affordable life insurance, you offset the money your family loses in case you die.

It Covers Final Expenses

Life insurance pays a lump sum financial benefit which fills the gaps left after your death. Costs such as cremation or burial expenses can be very burdensome. Most people buy life insurance only when they’ve reached their retirement age and have nothing saved. As a result, much of the final burial expenses are left for siblings and this can lead to a series of problems. The siblings that have the finances are left to pay, and this can affect their relationship with other family members. Life insurance caters for such expenses and eliminates conflicts between siblings.

Enjoy Tax Advantages

All the payouts of life insurance are free from tax, meaning you get the full amount.

No Long Waiting for Payments (like other insurance policies)

Unlike other types of insurance policies that require you to wait for analysis, evaluation and more, life insurance provides quick payments with no prolonged waiting periods. This helps to cover immediate expenses in case of death thus reducing the burden on family members and relatives.

Cash Benefit

Other types of life insurance policies provide cash value. Meaning from the premiums you pay, a portion is set aside then the accumulated interests are invested back into the market. You can still borrow money from them or wait for lump sum payout at the end. You can also bundle up your coverage with other types of life insurance policies which makes it very flexible.

Joint Policy Discounts

When you opt for a joint policy with your spouse, some life insurance companies will offer you a multi-policy discount. This is critical especially if you want to save on life insurance premiums.

How Do You Obtain Life Insurance?

There are various ways you can get a policy that fits your needs. One way is by looking for a policy that covers between 5-10 times your annual income. Such a policy will not only handle expenses but also covers outstanding debts.

Work With a Broker

A broker helps you to shop around for best rates and coverage on a low budget. However, avoid working with captive agents. They can lead you into trouble as they work with single companies which may not provide you with the best underwriting in case of health issues. You deserve the best deal!

Compare Coverage With and Without Medical Examination

If you’re looking for the best coverage at an affordable price and you are sure of your health, then don’t fear taking a medical exam. Remember that various factor such as health status, job and lifestyle issues are considered when determining premiums. Whether it is a final plan or term life insurance, the coverage should be affordable to you. But first, make a comparison between non-medical and medical life policy.

Overall term life insurance is ideal if you would like to replace your income, pay debts and leave your dependents in a financially safe state. The policy doesn't have fluctuating premiums and can give you comprehensive death benefit which is paid out directly to your family upon your death. Term life insurance can be relatively affordable compared to permanent life insurance.

Bottom Line

Although life is unpredictable, two things are certain: taxes and death. Sudden death can put your family in a stressful situation especially if you don’t have much saved for such an emergency. The best way to prevent your family from falling into financial troubles is by taking out an affordable life insurance policy. It caters for your final expenses, pays off debts and replaces your income among other benefits.

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