8. Discounted Policies When You Buy Early
The younger you are when you purchase your life insurance policy, the less expensive it will be. Policyholders can save quite a bit of money over the life of their policy by purchasing a plan when they are younger because they are considered lower risk for the insurance company. Insurance companies use age and general health as major factors to determine premium amounts for each policy. Therefore, the younger and healthier you are, the lower your premium will be. If insurance companies see you as a higher risk policyholder with existing health concerns or advanced age, the premiums will be higher. This is why it is important to purchase a policy sooner rather than later.
7. Income Replacement
If you and your partner/spouse both work and contribute income to the household, your death could be financially devastating to your partner. In this case, a life insurance policy can provide the income that will be eliminated upon your death and allow your partner or spouse time to make changes that will allow them to live on their income alone. In this case, your partner may need to downsize the home and reduce expenses, but the death benefit from your insurance policy ensures that they will not have to do so in a rushed and stressful manner.
6. Provide for Children
If you are a parent, you know the high cost associated each year with raising a child. These costs last into adulthood, and failing to plan ahead in the case of death can drastically affect your children for years. In some cases, savings and other financial planning can provide for your children until they become adults, but an insurance policy will still assist them when they are older and help them with their futures as well.