Why should you get Life Insurance?

Certainty is only as consistent as change. Death can sneak up to you like a bat hunting in the dead of night. With this foundation, it’s safe to say that you may never realize when death latches onto you. If that were to happen, would you rather your loved ones eulogize you or be burdened with your expenses?

The sudden death of a bread earner could land the remaining family members in a difficult situation. They may be left with a large bill of expenses and limited resources, or even worse, the loss of property and assets. According to the statistics released by the life insurance industry,  43% of the population does not have a life insurance policy. It’s never too late to get an insurance policy, however, timing can be crucial for the convenience and cost.

If the situations mentioned above aren’t enough to convince you, here are some reasons you should get one.

Reasons for Getting Life Insurance

Birth of your baby

Life insurance is a must in any case, but more so, if you are starting a family. It’s a known fact that people’s health declines with age. If you purchase an insurance policy now, your rates will be significantly lower than when you get older with comparatively deteriorated health.

In case, post-birth, there is one income instead of two (if one parent decides to stay home, forgoing their salary), there’s a bigger reason for your children to have a safety net.

According to Policygenius, best rates can be obtained if you take the medical exam before pregnancy. However, few companies may agree to adjust their rates if you undergo the test after pregnancy.

Your wedding

If you are going to be the sole bread earner of the family after your wedding, it is not a bad idea to get insurance protection. This way, you will be insured and can share a good lifestyle. Upon your death, your spouse will get the chance to maintain a similar standard of living.

Your family

If your family relies on your income, you probably need life insurance. If you are acting as a caregiver for your aging family members, then with the insurance, they will be left with some money. This money could help them out with expenses and care.

Not to mention, life insurance should be considered for the one working in the house. The cost of replacing someone to do domestic chores, childcare, etc can cause financial issues for the surviving family.

Your debt

Financial experts recommend including your debt when planning your life insurance policy so the amount can be comfortably taken care of. For most Americans, the largest debts include mortgage and possibly, student loans.

Federal student loans may be forgiven upon death but that is not the case for private loans. Life insurance may be a good idea if you live in a community property state or have a co-signer on your student loan.


In your absence, certain life insurance policies let your employees and partners be paid still. You can also use a life insurance policy as collateral to secure a small business loan, said Melbourne O’Banion, CEO of Bestow, an online insurance company. In the event of your death, your loan will be paid off and the remaining sum will go to your beneficiaries.

Your high-risk job

When assessing your risk level, your occupation consideration is a must. Needless to say, there is a greater probability of you dying in a high-risk job than in a regular job. According to Policygenius, jobs in construction, aviation, mining, firefighting, and a few others will mostly result in a higher premium.

It is recommended to buy separate short-term disability insurance to protect against loss of income due to a temporary injury or so. Most life insurance policies don’t let people in high-risk jobs add a disability rider.

You’re a young adult

Purchasing an insurance policy while you are young is beneficial so that by the time you need it, you need not pay more due to your age.

It will also help in covering your funeral costs, making it easier for your loved ones. If you wait too long, you risk being refused a life insurance policy, in case of problems with your medical exam.

Your extreme hobbies

If you have a penchant for extreme sports, you may want to consider getting a life insurance policy. Even though you have to pay more to be insured than if you were in a high-risk job, the amount will be worth it considering the chances of unnatural death.

It is better for you to not lie on your insurance application. If you die within the first two years of your policy being active, your death benefit may be decreased or canceled.

An inheritance for your heirs

In case, you don’t have assets to pass onto your heirs, by naming them as your beneficiaries, you can create an inheritance for them. This will help them get a head start in their life and ensure minimum comfort.

Charitable Contributions

You can help many and possibly save lives by making a charity your beneficiary in your life insurance policy. This way, upon your death, you would have left a positive impact on multiple lives.

Your life insurance through your work

If you have life insurance through your work, it is still better to have your separate insurance policy. It isn’t certain when you could lose your job or decide to change jobs. In this case, pretty much no company is generous enough to let you keep the insurance policy. Hence, it is much smarter to have an insurance policy, outside of the hands of your employer. A little backup doesn’t harm anyone.

Examples of the need for life insurance

  • Emma, a single mother, knew the importance of insurance to protect her children but put it off as a task for the future. When her son was 18 and daughter 15, she purchased a house for them to live in even though she lived paycheck to paycheck.

While returning home from the grocery store, Emma dies in a hit-and-run case. Now the children were not only left to grieve their mother’s death but were also broke as there wasn’t much left in the bank. To avoid unfortunate situations like these, it’s quite important to have a life insurance policy.

  • Daisy started a tech company when she was 24 years old. She successfully expanded it into a multi-million business by always staying ahead of its time. Daisy had thousands of employees but was very invested in the growth of the company.

After a quiet getaway to her hometown and witnessing the death of her very young aunt, it dawned upon her that death can pay visit uninvited. She considered her company to be the most important aspect of her life and wanted it to thrive even when she died. She took a key employee insurance policy to protect her business.

Alas, a couple of years later, Daisy died in an accident. Revenue plummeted after her demise but the death benefit kept the company running till the board of directors could appoint a new CEO. Eventually, the new CEO was able to revive the company back to its former glory.

Factors that affect life insurance policy.


As mentioned before, the younger you are when availing the policy, the cheaper your policy rates will be. The likelihood of the company paying out your policy increases with the increase in your age.


Women tend to live longer than men. That automatically makes women lower life insurance risk than men. So, women usually pay less for insurance than men.

 Health History

Your cost of coverage could be increased based on your family history of illness, namely hereditary diseases. Failure to mention a serious disease or surgery could lead to invalidation of your insurance policy.

Smoking or Tobacco use

Smoking and the use of tobacco lead to several deadly diseases like lung cancer so this means increased rates. A few companies may offer a separate price for smokers and tobacco users.


As mentioned before, high-risk hobbies lead to high priced insurance policies as the risk of unnatural death is significantly high.


If your jobs require you to perform dangerous duties, puts you in life-threatening positions, or exposes you to toxic chemicals, your policy rates will be higher.

Type of policy

Last but not the least, the type of policy you choose affects your rates. Policies that are issued for greater benefit amounts over a longer period and generally cost more. Additionally, whole life insurance policies tend to be more expensive than term life insurance policies.

The best insurance policy for you would depend on your reason for buying an insurance policy, your situation, your age, and the stage of life you are in.

The purchase of an insurance policy is not only a financial but also an empathetic decision. Your choice to opt for an insurance policy could directly affect your loved ones upon your demise. The policy could prove to be the silver lining in their dark cloud.

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