The #1 Reason We Buy Life Insurance
Did you know that 85% of Americans believe you need life insurance, yet only 62% say they have it?
When asked, the people without life insurance said it would be too expensive. They guessed the cost, and they overestimated by 4-5 times.
Long story short – not enough people have life insurance, and many think it’s more expensive than it really is.
But what’s more important than the cost is the why. Why do you want life insurance? Why do you need life insurance?
The 4 Reasons You Buy Life Insurance
When you break it down, there are 4 main reasons anyone buys life insurance.
1. Leave a Legacy
Many people buy a life insurance policy so that their children and loved ones receive an inheritance after they pass away.
That money can be used to pay for the funeral if money isn’t already set aside for that, but other than that, the money can be used for anything.
Another example is buying a life insurance policy and listing a charity as the beneficiary. You leave your legacy by giving a charitable donation as your last wish.
2. Cover funeral and burial costs
Final expense policies help pay for funerals and other end-of-life bills, such as any debt or healthcare costs. These policies are generally pretty small, with the benefit ranging from $10,000-$30,000 or so.
Funerals are expensive – it’s quite easy to have a modest funeral and spend around $15,000. If you don’t have that kind of money saved up, a small final expense policy can take care of that for you.
3. Income replacement
The third reason we buy life insurance is to make sure our dependents have enough money to survive. For example, if you passed away, who would suffer from that loss of income?
A life insurance policy can protect your loved ones by making sure they are taking care of when you’re not there.
4. Cover outstanding debt
If you have any debt, such as a mortgage, a car loan, credit card debt, etc, a life insurance policy can be set aside to pay for it.
If you don’t have a plan in place, that debt gets passed along to someone else. That’s not exactly the best legacy to leave.
The Ultimate Reason You Buy Life Insurance
To recap, the 4 main reasons we buy life insurance are:
- Leave a legacy
- Cover final expenses and burial costs
- Income replacement for those that are dependent on current income
- Cover outstanding debt
But what’s the real reason we buy it?
Love is the #1 reason anyone buys life insurance.
Life insurance is a selfless gift – you’ll never reap the benefits of it, but your loved ones will.
When you want to pass on money to your children and grandchildren, life insurance is a gift of love.
When you want to pass on money to a charity that means something to you, life insurance is a gift of passion.
When you want to leave money for your funeral so that your loved ones aren’t burdened with the cost, life insurance is a gift of affection.
When you want to leave money for your spouse or dependents, life insurance is a gift of care.
When you want to leave money to pay for your debt so that someone else doesn’t become responsible, life insurance is a gift of respect.
Life insurance is so much more than a bill that comes in the mail each month. It’s a selfless act.
An act of love.
Celebrate this Valentine’s Day by planning for your future. Call us for a free consultation and quotes today.
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