Often, you hear someone say how important having life insurance is. Perhaps now you have a home or family of your own and you are beginning a new stage in your life. You may be wondering if life insurance is for you.

What exactly is life insurance?

One way of describing it is: life insurance is financial coverage to be paid to a beneficiary upon the death of the policyholder. There are countless types of policies, and it is a good idea to do your homework to see which one is right for you and your situation. Three things to consider when searching for life insurance are income, dependents, and financial obligations.

Now you may ask, “Why should I get life insurance? Are there any benefits to such a policy?” Below are four reasons you should buy life insurance.

• Income Supplement: Life insurance creates financial security for loved ones, especially if the policyholder was the sole provider. The insurance helps the beneficiary by supplementing the deceased’s lost income.
• Final expenses: Having life insurance can assist the beneficiary with costs such as medical bills, funeral costs, and other “end-of-life” expenses. Burial costs can be less of a burden as life insurance can guarantee money is available for such things.
• Costs that will be ongoing in the near future: Life insurance can help cover mortgage and education payments and supplement student loans. Having life insurance gives security with ongoing financial obligations. Perhaps you have debts that will need payment or creditors will come knocking. The beneficiary gets the remainder of the policy.
• Equity and business: Depending on the policy, you may be able to withdraw funds that have built up over time by paying premiums. Life insurance is often used for emergencies. If you have a business, it’s financial responsibilities can be covered if something happens to you.

Everyone has different financial needs, and it is important to find a policy that suits you the best. There are policies for everyone, even those who think they can’t afford life insurance. No one really thinks of getting life insurance when they are young and full of health, but that is the best time to take charge and get some. Life insurance brings peace of mind, even with the smallest policy. It will comfort you knowing your loved ones are taken care of, no matter what, in the future.