The Importance of Life Insurance

Life is a fleeting moment of joy, and what awaits us after death doesn’t matter because we’ll be leaving those who we love. We are often riddled with questions about death, the grim darkness that awaits us, but also the question as to who’d take care of our loved ones. While most questions remain unanswered, there’s a solid answer to the last question — life insurance.

Life insurance or term insurance takes care of your loved ones even after your death. It is also termed death benefit, which is a bit dark to say, but exists so that our loved ones don’t suffer a lack of money. This article will highlight the importance of life insurance.

Financial Protection

Life insurance is a long-term savings plan which means that you put your money into an account that accumulates over time and can be claimed by your beneficiary at the time of your death. It is kind of like the droplets that make up the ocean. Individually they might not be big amounts of money, but the lump sum is enough to take care of your family for a generation to come until they can secure a stable income.

There are three types of life insurance:

  • Term life insurance: This kind of insurance covers a set period that varies from 10-35 years. These plans expire at the end of the term but can be renewed if necessary.
  • Whole life insurance: This kind of life insurance covers an indefinite period until you pay the fixed premiums. Once you stop paying this premium, the term will expire.
  • Universal life insurance: This insurance is similar to whole life insurance, while the only difference is that you can alter the premium’s value. Both of these insurances can accumulate over time and gain interest, hence having a cash value.

Replacing lost Income

The way prices are rising nowadays, day-to-day activities like shopping for groceries have become expensive, the cost of living has increased drastically from what it was 10 years ago. If you work for a 9-5 job or own a small business of your own, or are a rising entrepreneur, your death can have a major setback for the financial health of your family. In such a case, covering yourself with life insurance is highly suggested; that way, they won’t have to suffer as much after you are not present.

You need to plan this life insurance well. The reason is that you cannot invest more than what you can pay on average; you need to control the value of your premiums. At the same time, you cannot underinvest either; your family might need this money after you pass away. In such a case, you’ll need to make calculated decisions. There are various calculators present for this job.

Takes care of debt and Mortgages

If you own a house, you know how tough it can be to pay off the mortgage or pay rent if you live in a rented house or apartment. Such expenses won’t disappear even after you die; in fact, they can lead your family to become homeless if not taken care of properly. There are two ways in which you can deal with such a situation. You can either pay off the mortgage while you’re alive, which is the best-case scenario, but god forbid, if a disaster ever falls upon you, a backup plan is always advisable. This backup plan is named life insurance.

Pays for your children’s education

One of your major causes of worry even now might be the fear of where you’d get your kids to study. When they get into a good school or college, the fees is nothing to scoff at, even if they are awarded a scholarship. In the case that something morbid occurs and you pass away, the fear of your child’s education might haunt you in your grave. To take care of this, we have life insurance as a backup. When you are secured, you can rest easy.


This entire article might have had an ominous tone. But it’s the reality of this world. Our life is just a moment that might pass at any time, and the cruelty of this world is eternal. If you want to keep your loved ones safe, insure yourself, cover yourself with life insurance.

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