Why Buy Life Insurance?

Life insurance is considered to be the cornerstone of solid financial planning. Investments and savings plans are important to long-term financial success, but death is a lot less predictable and always inevitable. So life insurance is necessary to solving the financial dilemmas you leave behind. Life insurance can help solve some of the following.

1. To replace income for your dependents. People rely on you and your income. Once you're gone, they will still be relying on you but there will no longer be any income. This is the most important reason to have life insurance.
2. To pay final expenses. If you pass away and leave any outstanding debts in your wake, these debts will become a burden on your family. They can use the money they get from your life insurance to pay off these debts.
3. To create an inheritance for your heirs. Even if you have no other assets at the time of your death, you can name your heirs as beneficiaries on your life insurance so you can at least leave them something.
4. To create a source of savings. When you purchase a cash value life insurance plan, you are going to be forced to pay a regular premium towards the plan. In turn, creating a savings plan for your beneficiaries that matures upon your death.
5. To make a significant charitable contribution. If you want to really leave a lasting impression once you're gone, you can name a charity as a beneficiary and they will receive a portion or all of your life insurance compensation.

Life insurance is integral if you do not want to worry about your family if something happens to you. As you can see, there are many reasons why you should be paying a small regular premium towards a life insurance plan.