Unexpected accidents can lead to financial ruin for any family that is not prepared for the worst. Outside of that, families who know that death will come with heavy financial burden may not have the means to save in the time frame available. There are many reasons to have life insurance, and all you need is one reason which makes it important to your family.
Workplace Insurance Has Too Many Gaps
Many people, especially if you work in a service or construction-based job, will provide some form of life insurance. The terms of these policies usually provide coverage only under very precise situations. Usually, workplace life insurance will only provide benefits to surviving family members if the death took place while on-the-job. Or, if the death was a result of injuries from the workplace. The likelihood of that happening is extremely rare. Additionally, these policies don’t often cover the entirety of funeral expenses.
Paying Off Debt
Your surviving family members may not be financially responsible for your debt. Some forms of debt, such as credit cards do not pass on to your next of kin. Meanwhile, student loans may qualify for forgiveness in the event of a death; in some circumstances, forgiveness is not available. Debt can follow your family after you pass, even if they’re not legally liable for resolving the outstanding balance. Why? Debt collectors will not stop collection efforts until your family either pays or takes legal action. Having life insurance can prevent your family from dealing with harassing demands for money that isn’t available.
Providing Financial Stability
Life insurance policies are meant to cover expenses that the family otherwise would not be able to pay for. Usually, this will include funeral expenses, outstanding debts, and to cover everyday household expenses. Regardless of your type of life insurance, your family will likely lose a source of income after someone passes. Most adults, even older adults, contribute to the household monetarily. After you pass paying the mortgage, buying groceries, or keeping up on the heating bill may prove difficult.
Additionally, many people choose a life insurance policy that will provide a form of inheritance. This can leave young children a bit of financial stability when they come of age. Or young adult children can benefit from some added financial stability that they would have had if their parent was still around.
It’s Generally Not Expensive
Depending on the type of insurance you get, the extent of the coverage, and your age, insurance may not be expensive at all. Life insurance isn’t expensive when you get quotes and shop around as well. Like any other form of insurance, be sure to contrast and compare rates and policies before committing to anything. Many policies are available for a monthly payment that would not provide the same payout if you had just saved that money. This argument, commonly used against getting life insurance, doesn’t account for the fact that many people won’t save that 30, 50, or 100 dollars every month. Work with an insurance provider that makes you comfortable and has policies that cover everything you care about.
