5 Reasons You Need Life Insurance
Hey Veterans! I have some less than good news for you. I hope you are in a seated position. Are you comfortable? Ok, I guess I’ll just start…
There is no way around it. Sorry, friend, but death is eventually going to come knocking for all of us. While most never want to think about the day their number is up and prefer to think that they will be blogging forever, others take a more practical approach to the situation.
Although unpleasant, life insurance is profoundly important and can be more helpful than you realize when the time comes to go out to pasture like Ol’ Yeller.
Let’s discuss the top 5 reasons why veterans (and civilians too!) need to buy and maintain appropriate life insurance policies.
1.) Young families need protection
Being a parent is scary, but what is even scarier is the prospect of leaving your children without a parent while they are still young. Today, many families (including mine) are choosing to have a stay-at-home parent for various reasons both social and economic.
Oftentimes, the parent who stays home will find it harder to re-enter the workforce due to a lack of practicing skills or falling behind in the industry with which they worked. Life insurance can provide the security net needed, as the spouse carves out a new life as a single parent.
2.) A Funeral Costs a Fortune
Let’s face it, funerals are not cheap. And few families want to go the route of cremation (which might still run you $3,700). The average run of the mill funeral costs around $8,000-$10,000 and the funeral business in the United States alone accounts for $20.4 Billion dollars per year.
Don’t leave your loved ones with the burden of trying to figure out how they can avoid putting you in a freezer until they can scrounge up the cash to properly bury your remains. What’s more, there is no government help, unless you can find a way to bury someone on the $250 some states social security offices offer.
3.) Life insurance can be a savings policy
Cash-value life insurance, such as whole life and universal life can be cashed in or sold if you no longer need a policy or need access to some quick cash. Many people use this as a safety net for retirement as opposed to going into debt and getting a reverse mortgage.
4.) You’re Gonna Leave Your Debt To Who?
Debt is an awful thing to have, and it is not something you want to leave your family with. The average amount of debt left by a dead person is on average $62,000. So rather than stressing your spouse or family out regarding the mortgage that’s left to be paid, why not buy a policy and make sure your will is absolutely clear about how the money is to be distributed.
5.) Taxes Don’t Care About Your Demise…
Even in death, Uncle Sam still, wants you…Death or Estate Taxes account for very little of the IRS’s revenue, but if you are over the exemption amount then you have to pay around 40% of your estate to your Uncle. Not to mention the fact that if you have any taxes owing or business taxes, then the IRS will still want to collect on those too. They want their cut whether you are dead or not.
Just Buy It!
In the long run, life insurance is the best investment you can make for you and your loved ones. It is affordable, reliable and there usually aren’t any physicals in order to qualify for term life insurance.
What’s more, it is important to remember that you can always start off with a small amount (say…just enough to bury you) then alter the policy as your life changes and your family grows.
Do you know someone who left a big burden because they didn’t have proper insurance? If so, leave a comment below or on our Facebook page.
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