Life insurance is designed to protect your loved ones in the event of your death. Your beneficiaries may be your wife, your children or any other family members or partners with whom you have an emotional and financial obligation.
As a basic guide, consider the following ten items as bona-fide reasons to maintain life insurance:
1. Life insurance will free your family members from the burden of the loss of your income, debts owed, and daily expenses as the continue their lives if you should die.
2. It will secure your estate by providing
tax free
cash that can be used to pay estate and death costs and to shelter business and personal expenses.
3. Some life
insurance policies
4. Coverage for critical illness can be made a part of some
life insurance policies
, which can help to pay some expenses during a period of disability.
5. A valid life insurance policy can improve your
credit rating
.
6. Creditors do not have access to cash value of a life insurance policy or to the death benefits in the event of a
bankruptcy
.
7. Funeral expenses can be covered by a life insurance policy.
8. Certain types of Term life insurance allows you to get much of your premium back after a specified period if you do not die during the policy term.
9. A business that is dependent on an owner for funding or for business activity can benefit if from a life insurance policy in the event of the unexpected death of that person.
10. The lifestyle of your family can be maintained if you die.
