When we are young, vital, and brimming with ambition, life insurance is likely the last thing on our mind. We work on developing our careers, bringing up our kids, and building strong family relationships. However, we live in a world which is filled with risks and uncertainties, and for the most part, we seem to believe that all those tragedies and accidents happen to someone else. That is precisely why in too many parts of the world, investing in life insurance is constantly delayed until retirement.
Even though you might go through your entire adult life without ever encountering a severe health issue or losing a loved one, it’s essential to understand the importance of investing in your own life. After all, getting the right kind of insurance is one of the best possible ways to a financially secure future for your family.
A source of income
If you have a growing family, you know the value of having a secure job and a solid source of income, preferably from both parents. However, there are families where only one parent is the sole breadwinner, making their income all the more essential for the wellbeing of your family. In both of those circumstances, the loss of a spouse can cause great financial turmoil.
For example, for you or your spouse to be able to continue working, you would need someone to take care of the kids, such as a nanny, or to pay for daycare services, and perhaps some housework, too. This is where a strong life insurance policy can serve as the substitute for the lost family member’s income and a secure way to maintain your desired lifestyle through reliable financial aid.
Covering funeral expenses
When a family member passes away, the sadness and distress that come with the event are more than enough of a burden for the family to cope with – so why should they have to be troubled further with the possibly significant costs of the burial and other arrangements?
A life insurance policy can also cover these expenses to help your family keep their current savings and income and to give them a peace of mind at least when it comes to this particular matter. That way, a bill that could be as high as several hundred or even thousand dollars can be taken care of with your policy.
Paying off debt
Many families in the modern economy purchase a home thanks to the mortgage loans, which are then paid off over your lifetime. However, in the event of your unexpected passing, or that of your spouse, you are left with quite a financial burden and only one source of income to rely on. Even lesser loans can be repaid with the help of this particular policy.
This way, your life insurance protects your family from any leftover debt and ensures a peace of mind for your family upon your demise. Whether it’s a mortgage, a credit card, or just a car loan, your family can use your insurance to protect their lifestyle needs with this added level of financial security.
Planning for your kids’ education
Even though we all want to see our kids graduate from their dream college, life sometimes gets in the way – but you can make sure they can still pursue their goals and ambitions. For instance, you can discuss the option of using your life insurance as a source of funding for your kids’ college tuition and other needs. Make sure that your coverage is suitable for this type of usage so that you can protect your children’s academic future.
On the other hand, your policy can be used as a supplement to your existing trust fund for their college, and prevent them from taking up student loans later in life. If your kids still do need to borrow a certain amount of money to finish their education, your insurance can be used to help them pay off their own debt.
Covering unexpected expenses
Many families have divided a variety of chores among their members, from paying the bills, taking care of the kids or even an aging parent, and other expenses that come with your family life. However, without the support of one of the family members, all of these expenses fall upon the shoulders of the remaining caregiver.
In such situations, having life insurance to cover the costs of everyday life is an excellent way to enable your family to continue living worry-free when it comes to their financial security.
Contributed by Luke Douglas.
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