Here are the reasons you might need life insurance

Here are the reasons you might need life insurance

Here are the reasons you might need life insurance

Life insurance guarantees payment of a stated death benefit if the person who is covered dies while the policy is active. While not everyone needs life insurance, there are many reasons why one might choose to hire a policy.

Usually, people who are just starting a family or have young children, as well as spouses who provide the largest portion of the income, are who opt for life insurance. However, these are not the only individuals who can benefit from these policies. Before explaining the main reasons to buy insurance, however, we will explain the available options.

Types of Term Life Insurance:

1. Level term or level-premium policies
These provide coverage for a specified period ranging from 10 to 30 years. Both the death benefit and premium are fixed.

2. Yearly renewable term (YRT)
These policies have no specified term, but can be renewed each year without providing evidence of insurability. The premiums change from year to year; as the insured person ages, the premiums increase.

3. Decreasing term policies
These policies have a death benefit that declines each year, according to a predetermined schedule. The policyholder pays a fixed, level premium for the duration of the policy. Decreasing term policies are often used in concert with a mortgage to match the coverage with the declining principal of the home loan.

Who needs life insurance and why

The main reason to buy life insurance is to make sure your dependents—which can be children, spouse, siblings, aging parents and so on—are able to support themselves in case you pass away. That is why many people become interested in these policies when they get married or welcome their first child. Ideally, the family will receive enough to replace your salary for five to seven years.

Nevertheless, some older adults whose family is already able to support themselves also buy life insurance. The same is real for childless young adults, according to Investopedia.

Moreover, small business owners of all ages can take a key person insurance policy, which protects their organization and employees.

Some retirement-age adults buy life insurance because they do not have a large amount of savings, but want to make sure there is enough money to cover their funeral or cremation expenses.

For younger adults, the reason might be protecting their family, in case of death. Those who carry private loans with a cosigner might need life insurance to cover those costs and not burden their family should they pass away.

Two other reasons to buy life insurance are having a high-risk job or extreme hobbies.

If you feel like one or more of these apply to you, Seabrokers can help you with your life insurance needs. For more information, you can call (864) 587-2141 or get your free quote here.


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Seabrokers Insurance
Phone: (864) 587-2141
Fax: (864) 587-1604
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1416 John B White Sr Blvd
Spartanburg, SC 29306