Reasons People Buy Life Insurance

Most of us know that life insurance helps provide overall peace of mind, but have you considered the specific reasons why you personally may need life insurance? It’s practical and wise to anticipate how your loved ones will pay the bills when you pass away. Sometimes, it’s the combination of whole and/or term life insurance benefits that can help families cover daily expenses, medical bills, funeral costs and more.

Here are some common situations where it may be a good idea to buy life insurance:
A job change or retirement.
Are you prepared if you lose an employer-sponsored life insurance policy? Or, if you’ve retired, do you have enough savings to help protect your family from hardship in the future?
A change in marital status.
Your spouse may need help covering living expenses or bills in the event of your passing.
Older children leaving the nest.
Loved ones who count on you may still need help with education costs or living expenses after your passing.
The death of someone close to you.
You might ask yourself: “What if that were my family? Have I protected them adequately?” Or, maybe a loved one’s death has left you with new financial responsibilities.

Life insurance can help make your family’s future more secure
Regardless of your age or circumstances, purchasing a new or supplemental life insurance policy can provide your family with a measure of financial protection to help:

- Replace income for an interim period of time that would be lost if you, your spouse or your partner pass away.
- Pay your mortgage, rent or daily living expenses.
- Cover funeral costs, medical bills or other debts left behind.

Life insurance can be affordable and easy to find
If you’ve thought of life insurance as an extra monthly expense that you can’t afford to add, maybe it’s time to reconsider. Remember that the entire face value of a life insurance policy can pay out to your beneficiaries, generally tax-free.

Life insurance can help with funeral expenses and more
No one wants their family to experience hardship in paying their burial expenses. This may be one reason why you’d consider adding a small supplemental life insurance policy — just for an amount that would cover those final expenses.

Consider your own peace of mind and your family’s needs, and you too may choose to purchase term or whole life insurance. With so many companies offering free information kits and rate quotes, you can easily compare the benefits and find the answers you need.

This article is provided by New York Life Insurance Company for informational purposes only. This article is not intended to provide tax, legal, financial, or accounting advice. Please consult your own professional for advice specific to your circumstances.