7 Reasons to Buy Life Insurance

October 29, 2025 | Kari Mellone

Life insurance is one of those things that you know is good to have just in case, but it's also easy to put off actually obtaining. But a good life insurance policy can do a lot more than provide a payout upon one's passing; it can be used for protection, financial planning and more. In this article, we'll share 7 reasons you may want to buy life insurance, some you probably have in mind and others that may not be as obvious.

7 Reasons Everyone Should Consider Life Insurance

1. Protecting Your Loved Ones' Financial Security

One of the most important and common reasons why you would consider buying life insurance is to provide financial protection to your loved ones. This is used with individuals of all ages and family sizes, from young and old couples without children to families with one or two parents. In the event of a passing, life insurance can replace the lost income. This can help cover the expenses of daily living, rent or a home mortgage, childcare, education and more.

2. Covering Outstanding Debts

In addition to replacing a lost income source, life insurance can also be used to pay off outstanding debts. A life insurance payout can be used to pay off loans, credit cards or a mortgage, helping to lower financial obligations for your family and lessening any financial burdens.

3. Paying for Final Expenses

Depending on your personal situation, you may not have a significant need to provide support to family or loved ones upon your passing; however, you do want to be sure you do not become a financial burden to them. Funeral and burial costs can be extremely high; in fact, depending on where you live, the average funeral can cost over $10,000. A final expense life insurance policy can ensure these costs are covered and your end-of-life expenses are covered without putting any pressure or financial strain on others.

4. Supplementing Retirement Income

One potential benefit to having a life insurance policy that is often overlooked is that it may be able to provide income while you're still alive. Depending on the policy type and riders, a life insurance policy may be used to supplement retirement income. Some permanent life insurance policies build cash value that can be accessed later in life.

This is not available with all types of policies, so make sure you work with a licensed professional to ensure you are getting the right type of policy if this is your goal.

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5. Keeping Your Business Secure

For business owners, large and small, life insurance can be essential to ensuring business continuity in the event of a passing. Types of life insurance policies, including buy-sell agreements and key person insurance, will help protect a business if an owner or key partner passes away.

Understanding Life Insurance Beneficiaries

6. Leaving a Legacy

Life insurance isn't always about paying a debt or covering expenses; it can be a great financial vehicle to provide a tax-free inheritance and leave a legacy. After working hard your entire life to build wealth, grow your assets, and create a comfortable future, you want to ensure you can share that with the family who has shared your journey.

Learn more about Legacy Life Insurance

Generally speaking, when it comes to life insurance, the younger and healthier you are, the more affordable your premiums may be. However, this doesn't mean that life insurance isn't attainable for older adults and even seniors; you just need to work with a life insurance agent who knows the right type of policies for this group.

7. Providing Peace of Mind

The final reason you should consider buying a life insurance policy relates to all the reasons we've previously covered: it provides peace of mind for you and the ones you care about. Knowing your loved ones are financially protected can reduce stress and uncertainty, giving you confidence that their future is secure.

Protect What Matters with Life Insurance

It can be difficult not to focus on the inevitable when thinking about life insurance. In fact, that thought alone often prevents people from pursuing a financial protection policy that could make all the difference during an emotionally difficult time. But ensuring financial stability for those you care about isn’t something to put off; taking action today could make all the difference tomorrow.

Ready to explore your life insurance options?

Choosing a life insurance plan can be difficult. Working with an insurance broker can help you find a plan that fits your needs. Schedule a one-on-one meeting with one of our life insurance brokers to get your insurance questions answered!