1. To Protect a Mortgage
A primary reason that individuals purchase life insurance is to protect a mortgage.
2. To Replace Income
Most families purchase life insurance to replace income in case one or both parents die. Experts suggest 7 to 10 times the income.
3. Pregnancy/Birth of a Child
Most first-time life insurance purchases are results of becoming a new parent/grandparent or from having more children/grandchildren. If a loved one were to pass away, they would need financial stability to raise their children properly.
4. Marital Status Change
Marriage or divorce is a very logical time to purchase life insurance because new couples are taking appropriate actions to protect their spouse in the event of a tragedy, and most divorce decrees require you to carry life insurance.
5. Job Changes
Promotions or change of employer could influence the purchase of life insurance, because individuals are faced with new benefits, uncertain financial security due to a greater need for asset protection.
6. Death of a Loved One
Sometimes this may be the only motivation for someone to purchase life insurance. It is a reality check that really shows the true value of life insurance. It becomes very apparent for individuals to protect those that they love with the proper financial security.