Having a life insurance policy is vital to your emergency preparedness. Many people think that if they have good savings or retirement, there is no need for a life insurance plan. Although there may be situations where a life insurance plan is unnecessary, generally speaking, you should always carry life insurance. Here are a couple reasons why you should still have life insurance even if you have retirement or savings.

1. Life Insurance Is Paid On Death

The first reason that life insurance is so important is that it is a paid-on-death policy. This means that the moment the insurance company receives the death certificate, they will pay out the policy to the beneficiary of the policy. This not always how the rest of your estate will work.

For example, say you have a will and trust that delegates what happens to your property and money after you pass away. If this estate plan is contested, your savings and all of your assets could be frozen while the dispute is resolved. This means that your family could be waiting a good deal of time to get the money that they may need to take care of everyday living and expenses.

With life insurance, you know your family is taken care of right away and without delay.

2. Life Insurance Isn't Taxed Like Your Estate

When you pass away a good part of your estate could be taxed. This means that although you believe your family is getting a certain amount of money, they actually might only get a fraction of it because some of it is going to the state for taxes.

When you get a life insurance policy, it is safe from taxes. That means that the amount that you buy is the amount that your family will get.

3. Life Insurance Can Pay For Unforeseen Expenses

Near the end of your life, you can't be sure what kind of expenses you accumulated. Perhaps you have many medical bills, you had to live in a rehab or nursing facility, or a myriad of other things. Your family will be left with all of those debts, and having an extra life insurance policy can help to defray the burden of these expenses. Life insurance is one of the best ways to ensure that your family is left in the best financial position possible.

For these reasons, and many more, you should always carry life insurance.