money management

Why it’s important to have life insurance

family valuesConfession: I didn’t think about life insurance until I married The Hubby and our annual benefits renewal period came up. When he suggested we get a life insurance policy, my first thought (and I know this isn’t good for a PF blogger) was, Do we really need to worry about this right now?

Especially if you’re young and in good health, life insurance isn’t always something you really think about. Health insurance, sure…we all get sick at times. But life insurance? It’s like retirement savings when you’re young…something that seems so far away and unlikely to be needed that it can be easy to just dismiss.

But you shouldn’t (as The Hubby so wisely lectured me). Even if you are young and in good health, the truth is that anything can happen. It’s not fun to think about, but it’s the truth. And if something does happen, your family could be thrown into serious financial trouble. (In addition, of course, to all the other awful things that come with loss. Like I said, it’s not fun to think about, but it’s necessary.)

You owe it to your spouse, and children if you have them, to look out for them in the future just as much as you look out for them now. And life insurance is one way to do that.

The good news

The good news is that life insurance can fit easily into your budget. Especially if you’re young, it’s a great time to apply for a policy because you’re likely to get a better rate due to your age and better health. But even if you’re older, you can still find a great policy for a monthly rate that won’t break the bank.

There are hundreds of policies on the market, and choosing the right one for you is an important decision that takes some time and research. You should make sure you research different providers and ask the right questions when applying for a policy. You can also check out a price comparison site (like www.comparethemarket.com/life-insurance/) for an overview of all the policies and prices available at the time you’re looking to purchase.

One of the things that makes people skip life insurance is the fear that they won’t be able to afford it, but that’s totally not true. You wouldn’t skip car insurance because you’re a decent driver and you don’t want to pay the monthly fees, would you? (At least, I sincerely hope you wouldn’t!) Life insurance is the same way. Hopefully you won’t need to use it, but if you do, it gives you huge peace of mind that everything will be alright and your family will be taken care of.

Do you currently have life insurance? If not, what’s stopping you?

 

~Heart,

Em

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photo credit:  cjc4454

About the author

Em (The Blonde)

5 Comments

    • Definitely. Even now when it’s just me and The Hubby, we consider it essential. If anything (god forbid) should happen to either of, that’s half our household income gone.

  • I believe in life insurance. I’ve seen how it really helped my friend whose mother died while we were in college. I also see how the lack of it left my grandmother paying for my grandfathers funeral, and my once financially independent grandmother is now struggling. MY problem was when it wasn’t easy to establish. Until my current job, it was always offered through my employers. My non-profit org doesn’t offer the life insurance option to its employees so I recently pursued and established my own policy with my credit union.

    Im proud of myself for that. A lot of 20 somethings aren’t even thinking about life insurance. I had my friend tell me that I should sign up for a makeup box that comes every month that cost 29.99. I politely and proudly declined and said nope, “i’ll use that money to pay for my life insurance.”

    • Thank you for sharing those stories, Tonya. I hope they can help show other readers just how important life insurance really is.

      Good for you at such a young age to be making the right choices and turning down less important expenses to make sure you’re covered. You’re doing it right! 🙂

  • Well, having a life insurance is really crucial. In the event of tragedy there is acheap life insurance that can help pay final expenses, be income replacement, protect your spouse’s retirement plans, finance child needs (education, care etc), pay funeral costs and much more.

    Life insurance is our partner in facing those financial matters in the future!

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