Top 6 Reasons to Get Life Insurance

People take out life insurance policy for a variety of reasons, here are our Top 6 reasons, with further explanation below. 

Have dependents
You have people that rely on your income for their wellbeing.

Replace future earnings
Help family replace lost income to cover future expenses & maintain their standard of living.

Mortgage
Cover the balance of a mortgage loan.

Children’s education expenses
Cover the cost of future tuition for continuing their education.

Loan
Cover any other type of business or personal loan.

Burial & funeral expenses
Funeral & burial expenses can run very expensive, especially if repatriation is involved. 

 

1) Have dependents 

Most people who take out a life insurance policy are doing so because they have people that rely on their income for their wellbeing, whether that’s a spouse, children or parents.  Losing a loved one is bad enough as it is, putting additional financial strain on them makes it that much worse. 

 

2) Replace future earnings

Replacing lost income can help cover regular living expenses to help make sure your family can continue their lifestyle as much as possible.  Replacing lost income can cover the cost of other current & future one-off expenses:

Groceries & Food | Utilities | Health Insurance | School Fees | Housing Upkeep | Transportation

 

3) Mortgage or Rent

The place your family calls home is no good if they can’t afford the mortgage payment or the rent.  This is a major consideration in determining how much life insurance you require. 

 

4) Children’s future education expenses

It’s probably fair to say most people would like their children to be able to attend whichever university or institute of higher learning, without having to go into debt from student loans. Life insurance can help pay for the cost of continuing education for children at the project tuition fees are by the time they reach the appropriate age. 

Did you know?

Many people choose their policy term length based on how long until their kids would (presumably) be financially independent. Ex. Youngest child is 5 years old, take 20-year term length. 

 

5) Loans or Outstanding Debts

If you have other loans or any other debts, you’d want to make sure that your family would have the ability to pay anything outstanding. Without protection, current assets are used to pay off any debts, which can further leave your family in a bad spot. 

 

6) Burial & funeral expenses

The costs of burials & funerals are rising globally, from the grave plot, casket, cremation, service, food & flowers, the cost can easily top $10,000 usd.

What Does a Funeral Cost?

 

Starting at $50/month 

International life insurance + Critical Illness + Disability

The cost of a life insurance policy won’t bankrupt a family, but death or a serious critical illness could.

1607930392 40 Top 6 Reasons to Get Life InsuranceQuinn Miller- Managing Partner | Tenzing
 
 

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    Patrik Shore Tenzing Pacific Services

    Patrik Shore

    Senior Advisor
    From Sweden & New Zealand
    7 years' insurance experience
    Joined Tenzing in 2019
    Crim Science
    Speaks English and Swedish

    Speciality:
    - Savings Plans
    - Health Insurance
    - Life Insurance