Here are five possible benefits to having life insurance:
Cover your loved ones from the final costs: According to the National Funeral Directors Association the average cost of a funeral in the U.S is $7848. Even with a small life policy you can help your family and loved ones financially when they need it most. Also, most of your healthcare expenses will be in the last 6 months of your life so it’ll help your family to pay off any bills.
Cover your current debts: Hypothetically, if a loved one co-signed a loan and you pass away, they alone incur all of the debt associated with that loan. Life Insurance policies can help combat this by helping pay off these types of debts.
Possibility of leaving inheritance: Depending on your coverage type, your life insurance policy could insure more than just the cost of funeral expenses and possibly leave your loved ones some much needed cash.
Life insurance can be used as a line of credit: As you pay for your life insurance policy, you can borrow against the cash value of the policy you've built up while your still alive depending on your coverage type.
Replace necessary Income for a duration: There are different ways to calculate how much life insurance a person needs, but the most common is 5 or 10 times the person’s monthly income. This will help your family carry on their way of life for a period of time.
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Disclaimer: Coverage will vary on state, insurance company, and type of policy.
Information credit: https://www.nerdwallet.com/hub/topic/why-get-life-insurance
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