Life insurance provides financially for loved ones after you pass away. Not everyone understands the value of life insurance, though, and you may have parents, siblings or children who need to buy a policy. Several tips can help you convince a loved one to purchase this valuable coverage. For general background, see Life Insurance: Overview.
Share Peace of Mind
Your loved one may worry about how they’ll provide for the people who depend on them or cover medical expenses as they age. Life insurance can replace income, cover medical debts and ease other financial concerns. Owning a policy can give them and their family greater peace of mind.
Provide for Children
Life insurance can provide financial resources for children, which is important if your loved one has kids. The policy’s benefit can pay for daily living, childcare and education expenses or leave a legacy for surviving children.
Repay Debt
Many people take on a mortgage, student loan or credit card debt that may or may not be discharged upon death. Debt repayment can strain survivors’ finances, but a life insurance benefit can repay balances and reduce the burden left behind.
Prepare for End of Life Expenses
People generally do not like to talk about planning their funeral, but it’s an expense that could burden survivors. Talk with your loved one about typical funeral costs and the advantages of covering this expense with a life insurance policy.
Emphasize the Benefits of Buying Young
Because premiums are typically tied to age and health, encourage your loved one to purchase a policy while they’re younger and healthier to save money. As a bonus, whole life policies have more time to grow in cash value the longer they are owned; for more on how policies work, see What is Life Insurance?.
Offer Life Insurance as a Gift
Your loved one may hesitate because of cost. You can offer to pay the premiums as a gift so the policy remains in their name and benefits them while you cover the expense.
Use What Motivates Them
Maybe your loved one has prepaid funeral arrangements, no dependent children, or some group life coverage at work. Remind them that a private term or whole life policy can provide additional support for family members, charitable causes or other priorities and help leave a legacy.
Life insurance is a valuable asset. Use these tips to encourage a loved one to buy coverage for their and their family’s peace of mind, and if they have questions, encourage them to talk to an agent.
Frequently Asked Questions
Who should consider buying life insurance?
Anyone with dependents, significant debts, or final expenses to cover should consider life insurance to protect those financial obligations.
What’s the difference between term and whole life?
Term life provides coverage for a set period and is generally less expensive, while whole life offers lifelong coverage and a cash-value component.
Can I be the premium payer on someone else’s policy?
Yes. You can often pay premiums on a policy owned by someone else, though ownership and beneficiary rules vary by insurer.
Will employer-provided life insurance be enough?
Group coverage from work can help but often isn’t sufficient for full financial needs; many people buy private policies to supplement workplace coverage.