There are 99 different motives for people to get life insurance. From what we’ve seen, these are the 3 Most Popular Reasons.

The 3 Most Popular Reasons to Get Life Insurance can apply to almost any family dynamic. Unfortunately, old age isn’t the only way to die, and many people are finding that life insurance is important.

Any of the 3 reasons can be accomplished with Term Life Insurance, Whole Life Insurance, or Universal Life Insurance. Everyone’s situation is unique so it depends on what would be best for you and your family.

Truthfully, whether we like to think about it or not, we all must die; not just John Tucker (reference to a terrible movie made in 2006). What if there was a way you could get paid for doing something you’re going to do anyway?

Okay… well… while we’re being truthful, when you die it won’t do much for you, but there is a good chance that death check could help the family that you’re leaving behind.

1. Final Expenses
When someone dies, there are a lot of things that need to be paid for. This can include a coffin, a funeral service, cremation, and/or more. Should come as no surprise, but these things can be very expensive.

The average cost of a funeral with a coffin is about $7,850, and that average jumps to $9,420 if the cemetery requires a vault (imagine a concrete liner or look above).

If you don’t have enough money stashed in your Love Sac sofa to pay for these things, your family may have to resort to asking for help through online fundraisers or shoveling snow near Lake Erie for extra money.

You can avoid this by getting life insurance for what are typically called “final expenses.” This way, your family won’t feel frustrated and worried about the money and can focus on honoring your memory.

2. Income Replacement

Your family needs your income to pay for things like food, medical care, Amazon Prime, car payments, utility bills, and more. There are also future costs like your kids’ education or your spouse’s mandatory purchase of an electric vehicle. (Don’t blame Elon for that).

If you die without a way to replace your income, your family might have to struggle financially or drastically change their lifestyle. A death check can help by giving your family money to cover these costs.

How much insurance you need depends on how much you make, your savings, and any debts you may have. 99% sure Bill Gates won’t be donating his fortune to pay your family’s bills. (But I’m leaving a 1% chance for the multiverse theory)

3. Paying off a Mortgage

A mortgage is often the biggest expense in a budget. If you die, could your family afford to keep paying for your home without your income?

If not, they might have to sell the house they love and move somewhere else. This could also mean that your kids might have to change schools and lose their friends.

Life insurance can help by paying off your mortgage so your family can stay in the home they love without worrying about untimely payments.

In Conclusion

Memento Mori… Funeral homes are still a business; your family most likely uses your income to live; and banks don’t care how they get paid but will take the house if the mortgage isn’t satisfied. Unfortunately, auto-withdrawals don’t auto-stop once a parent passes away.

For most families having some life insurance is better than none at all. I encourage you to talk with your spouse or even your parent(s) to see what makes sense for you and your family. The right protection might not cost as much as you think.

Grieving is hard enough, but how long could your family live their current lifestyle without your income?

Which of the 3 Most Popular Reasons People Get Life Insurance could pertain to your life?

~Written by DeAirius Goodrum