Life insurance is more versatile and useful than you might think. Not only is it important to have as a financial safety net for your family, but depending on the type of policy you have, you can also borrow money from your policy and use it for unexpected expenses. This can be very helpful if your family is trying to save money, and can help you or your family pay for any unexpected scenarios, whether you are around or not. Find out just why life insurance is necessary and why so many people choose to purchase an affordable policy.
1. Everyday Expenses
When you are gone, your family could end up struggling without your income to pay for everyday expenses. Life insurance will help pay for all their everyday expenses when you pass away, so your family will not have to stress out about their bills while grieving your loss. While you will not be able to take away their pain, you can offer them financial stability until they can adjust to the change. Your life insurance policy will help cover mortgage or rent payments, utility bills, groceries, and more.
2. Therapy Expenses
Losing a loved one is not easy, and for some, it can cause depression and other issues that require counseling or therapy. If your loved ones need this, they will be able to pay for it with money from your life insurance policy. Your benefits will help them pay for therapy or will allow them to take more time off from work to properly grieve.
3. Dependent Care
If you have small children who need to be taken care of, or if you have elderly parents who live with you, you know that care for them is expensive. Childcare can cost on average $15,000 a year per child. When you pass, your spouse will most likely need help with the children and/or taking care of their elderly parents, and your life insurance can offer this for them by providing the funds to hire a nanny or caregiver.
3. End of Life Expenses
Funerals are not cheap. Whether you choose to get buried, which can cost around $15,000-$20,000 on average, or cremated, which can cost around $6,000 on average, final expenses can be a burden for any family. Life insurance will help your family be prepared for the shockingly high funeral expenses they will face. All life insurance policies can help cover these costs, but if you’re looking for an affordable policy that is focused on covering them, a final expense life insurance policy is a great option. Final expense life will cover funeral costs and any other debts you might have, while other types of life insurance policies can help cover more.
Monthly mortgage payments could also become a burden on your family if you are no longer able to help out. You want to make sure your family can continue to pay for the house where they have made so many memories, rather than having to sell it to pay down debts and for other expenses. Life insurance can help maintain monthly mortgage payments.
5. Medical Bills
If you are diagnosed with a terminal illness, your care could become very expensive if you need to have extensive medical procedures/treatments, or need to be put in a nursing home. Life insurance can help pay for these bills during your final years, especially if you choose permanent life insurance, which builds cash value over time. This cash value can be used to help pay these bills while you are alive, and the rest of the policy will allow your family to receive a death benefit when you pass.
6. Continuing Your Business
Do you have a business that you worked hard to build? The last thing you want is for your business to fail after your death, especially since it could continue to be a source of income for your family. Life insurance can help sustain your business, and help your business partners cover any losses associated with your death.
8. Education Fees
If you have children and are saving for their education, you should consider a life insurance policy to help cover their education fees if you pass away before being able to save enough for these expenses.
Your family has financial obligations that will not go away when you are gone: they will need your help more than ever with their expenses, and the last thing you want them to worry about while they are grieving is money. The best way to understand how life insurance works, and find the right policy for you and your specific needs, is by working with an agent who specializes in life insurance. We have provided the top life insurance companies in the nation below; each offers hassle-free assistance and the most competitive rates. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.