Who Are You Leaving Behind?

Two Critical Reasons Why You Need A Life Insurance Policy Right Away

People who start families tend to place a high premium on getting life insurance. They want to make sure that if they pass away, their partners and children will be able to continue living the way they are accustomed to. However, if you don't have children right now and don't plan to have any in the future, you might think that life insurance is an unnecessary expense. Your funds may be a little thin and you might figure that once you are gone there really won't be a need to leave anything behind. Although this may seem to make sense from a surface perspective, read further to see why you may want to rethink this notion.

Consider Those Who Have Co-Signed For You

If you went to a college or university, there is a high probability that you took out student loans. With 1 in 8 people carrying student loan debt in the United States, many of the people around you are in the same boat. Because you may have been extremely young when you applied for a private student loan, your parents might have offered their signature as a co-owner so you would qualify to receive the funds. What happens if you perish before you finish repaying the loan? The balance would then fall to the parent who co-signed for you and this can have detrimental effects.

The last thing you likely want to do is leave unpaid debt to your loved ones. Taking out a life insurance policy and naming any co-signers as the beneficiary could provide a financial buffer to those who were kind enough to help you in your hour of need.

You May Be Able To Borrow Against Your Life Insurance Policy

Some life insurance policies actually accumulate a cash value that you can borrow from. You might decide that you want to purchase a home one day and need a little boost to come up with the down payment. If you've been faithfully paying for a whole life policy, you may be able to get the money that you need to buy a house much sooner than you would if you didn't have the insurance.

As you can see, there are a number of very important reasons why you need a life insurance policy. Contact a life insurance agent or broker so you can sift through the options and choose the plan that is right for you.