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Why life insurance is important to have

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Life insurance - in the right amount - is critical for a variety of reasons. Thomas M. Barwick/Getty Images

Life insurance, even more than car, travel or even pet insurance, is critical to get right.

While each insurance type is important on its own merits, policyholders for those latter policies can always adjust their coverages after an accident or for their next trip or right before they get a new dog.

But life insurance, while flexible when alive, won't be adjustable after the policyholder has died. At that point, beneficiaries will only receive what's listed as available (assuming no cash deductions have been made).

This is one of the key reasons why life insurance is important to have. Policyholders are essentially leaving one last lump sum of money for their loved ones to use after they have died. It's vital that that amount - and the type of policy it's tied to - is the correct one.

If you're in the market for life insurance - or simply want to add more coverage to what you already have - speak with a life insurance expert now. They can answer any questions you may have and help you get started with a free quote.

Why life insurance is important to have

Life insurance is critical for a variety of reasons. Here are three major ones:

It can protect your family

This may seem obvious but many people don't have enough life insurance to provide long-term protection. In many cases, an employer-provided plan just isn't enough. Even savings and retirement investments like Roth IRAs or a 401(k) likely won't be robust enough to protect your family in the years (and, possibly, decades) to come. 

Fortunately, life insurance comes in all shapes and sizes, and, depending on a range of factors, you can potentially qualify for hundreds of thousands of dollars in protection and possibly more than $1 million. Compare the amount you could get from a term life insurance policy, for example, to your current savings and future income projections. It's easy to see the benefit of having a policy in place.

Speak with a life insurance expert today who can help you build a plan that protects your family.

It can pay off debt

The death of a loved one is already painful enough for family members. You don't want to add to the burden by saddling them with extensive debt. Millions of Americans have outstanding mortgage and student loan debt. Millions more have credit card debt. This is not something you want to pass on to your spouse and children.

But with a life insurance policy in place, you may not have to. If you're young and healthy you can qualify for a plan that will both cover what's left on your mortgage and student loan plus more. 

It may be unpleasant to think about while alive, and many beneficiaries won't think about it even after their family member has passed. But sooner or later the bills will come due. Thankfully, with a life insurance policy in place, your loved ones will be able to continue to pay even in your absence.

It can maintain a standard of living

This factor often gets overlooked when trying to determine the right amount of life insurance to purchase. But you should seriously consider it anyway.

Yes, you may be able to get a plan that protects your family and pays off your debt after you have died. But what if you want your plan to do more?

Think of all of the things your income is currently relied on for that aren't just mortgage and loan payments. Now deduct your income from the equation and see if your family can maintain their standard of living without you. If they can't then you'll want to make sure you have life insurance in an amount that can sustain them.

This doesn't necessarily mean you need a policy so your beneficiaries can live a lavish lifestyle. That's not mandatory. But you will want enough to help pay the bills, grocery shopping, pet care, etc.

Speak with a life insurance professional now who can help you determine the right amount of coverage you need

The bottom line

Life insurance is a vital part of sound financial planning. 

Make sure you have a policy - for the right amount - in place now. Plan for the future and protect your family. It's easy to get started!

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