5 Reasons You Need Life Insurance and How to Get It

Very few people want to think about life insurance. It’s uncomfortable to think about the circumstances that would lead to a loved one cashing in your life insurance policy. Despite the discomfort, however, the fact remains that life insurance is crucial. And ignoring it can be harmful to those you care about deeply.

Purchasing a life insurance policy gives you and your family tremendous peace of mind. And it helps you ensure that your loved ones do not have their lives turned upside down any more than necessary.

Not sure where to start? The staff at Lake Region Insurance Agency is here to help. We can work with you to navigate the process so that your family and assets have adequate protection.

Why Do I Need Life Insurance?

Spoiler alert: no one lives forever. Until science catches up with science fiction, we all will pass from this earth eventually. And since you can’t accurately predict when that will happen, you need to have a protective policy in place. Here are five key reasons you should purchase a life insurance policy.

1. You have dependents who rely on you.

Does anyone in your household depend upon your income? If so, life insurance is essential to provide for them in the event of your death. Responsibly planning for their needs is an act of love. A life insurance policy is critical if you have any of these dependents:

  • Children 
  • Spouse/Domestic Partner
  • Siblings
  • Parents
  • Disabled Relative 

Take into consideration anyone you’re responsible for who cannot support themselves if something happens to you.

A life insurance policy is particularly important if your spouse or partner is a stay-at-home parent. When one partner passes away, the bills don’t change. You want to ensure that your other half can handle the necessary expenses even with a tragic change of circumstances. 

It is also important to have a policy for the stay-at-home parent. If something were to happen to them, the surviving spouse suddenly might need to pay for new expenses. Daycare, housekeeping, or other services to keep the household running could become necessary.

Portrait of three siblings

An adequate policy can also make it possible for your children to attend college or have funds for a downpayment on a home. These things can still happen in your absence if you purchase a good life insurance policy.

2. You have a mortgage to pay.

If you and your family are living in a home with a mortgage, the house could be the first thing to go if you die. Death does not mean that your loved ones get a break from making the mortgage payments. 

A life insurance policy can give you confidence that your family can meet its obligations and stay in the home if they choose to do so. No one wants their family to have to handle the trauma and stress of losing their home, relocating, and managing property issues. Processing a death is stressful enough. 

A life insurance policy can require that the mortgage be paid off with the funds. Or it can merely provide enough cash for your loved ones to meet the monthly payments.

3. You need to cover funeral expenses.

Something that many people don’t realize is that death is quite expensive. The average cost of a funeral in America runs about $7000 to $12000. This amount is a considerable sum of money to need suddenly. 

Many life insurance policies will include funeral costs as part of the package, leaving one less thing for your family to worry about after your passing. 

4. You have debts or taxes to pay.

Death can also result in a heavy financial burden in the form of taxes for those left behind. These obligations automatically pass to your heirs and can have a significant impact on their inheritance. 

If you die with any consumer debt, such as car loans or credit card balances, your estate will be responsible for paying those. A life insurance policy can provide funds for your family to dispense with these debts.

Without life insurance, they may have to sell assets to cover the costs, and this leaves them at a disadvantage. A sufficient policy ensures that a chunk of money is there for them to cover any debts or taxes the estate may owe.

5. Your lifestyle makes you more vulnerable.

Insurance is a numbers game. And from taking a high-risk job to enjoying thrill-seeking sports, there are lifestyle choices that make death statistically more likely. 

If this sounds like you, it is the right choice to make sure your loved ones have protection when you’re gone. And if those life circumstances change, you can always adjust the policy to reflect a lower-risk lifestyle.

Take responsibility for your choices, career, and preferences by taking care of your family. Give them protection and peace of mind if the worst thing were to happen.

How Do I Get Life Insurance?

Since you now know that life insurance is the best way to go, there are a few other choices to make. The first decision is whether you would prefer a lifelong or term policy. A lifelong selection covers you until you die. The term option is for a specified amount of time, such as until your children are 25 years old. 

You will also need to determine the beneficiaries and any specifications you would like included, such as funeral costs. In addition, you’ll need to choose the value of the policy. Your Lake Region broker will be able to help with this decision.

Depending on your age and the value of the policy you want to purchase, you may need to have a medical assessment. Typically, this screening is minimal. It often involves having a nurse come to your house to take your vitals, ask some questions, and possibly do a blood draw.

Work with an Expert

Here at the Lake Region Insurance Agency, we have the tools you need to secure a comprehensive, personalized policy that is the perfect fit for your family. We offer options for our clients in Cokato, Willmar, and New London, MN, and beyond. Call or stop by any of our offices for a free Insurance review with one of our professionals.

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