Choosing a life insurance policy can be overwhelming because it forces us to think about something we really don’t want to happen: the effects on our family or loved ones once we die. Then, there are all the options and the added cost. 40% of Americans do not have any form of life insurance despite the fact that in 35% of American households, if the primary wage earner died, they would feel the financial impact within one month.

The main reason to get life insurance is to secure a lifestyle or wealth for your family (or a chosen beneficiary) after you die. There are other advantages as well. Here are the most common reasons to get life insurance:

1. To pay for funeral expenses, unpaid medical bills, student debt, or other debts remaining after death so that your family does not need to assume the burden.

2. To leave money behind to your family or spouse so that they can maintain the lifestyle they were accustomed to.

3. To leave an inheritance, donate funds to a charitable cause, provide funds for college, or pay off a mortgage.

4. To build wealth, as can be seen when using life insurance with investment options.

5. To transfer wealth and take advantage of various tax breaks for the beneficiary when receiving the death benefit. Life insurance can provide many tax-free advantages.

6. To pay for estate taxes so your family does not have to use the inheritance to cover these taxes.

7. To secure a mortgage or other debt when the lender requires it