Every reasonable person can guess why Whole Life Insurance is necessary. Yet many of us choose to ignore it in face of our impending mortality. They ignore what might happen to their loved ones, their family. The results can often be devastating for the ones you might have left behind. They are left with huge bill for your final expenses, or even lose their homes because they are not capable of paying mortgage anymore.
It is truly a worrying situation that about 43% of population does not own any life insurance according to a study by ‘Life Insurance Statistics and Facts’. The study also states that most of us are in desperate need for a good life insurance. Nearly a third among all American families face hardships with in the first month of the death of their primary earner.
A good life insurance policy can help protect you throughout your lifetime – helping to provide a secure financial future.
As well as valuable cash reserves.
Why Life Insurance is Important
- To Pay off any debts that might be a burden to your family once you are dead.
- Provide for your children so they can go to college, buy a house or even pay for a wedding.
- Give peace of mind to yourself and the family so you may be secure in the knowledge that your bases are covered.
- To pay for your funeral costs and not put a burden on dwindling family coffers.
Whole life is permanent insurance, which means that a payout is guaranteed as long as the premiums are paid as specified in the policy. And every payment you make helps grow a cash reserve, known as cash value. There is no down side to it whatsoever.
Another advantage of a good life insurance policy is, your cash value may eventually reach a point where you can borrow money from it for emergencies and major expenses. It will be considered a loan, so you will be charged interest. But you can be assured that it is usually at a much lower rate than other types of loans. And the best part is, you don’t have to pay it back. The outstanding amount will simply be deducted from the final payout to your beneficiary.