Knowing what you need and want for insurance can be confusing at times. As life goes on, people get married, start building families and careers/businesses – there comes a time when life insurance becomes a fundamental part of the family financial plans. Depending on the type of policy you have, life insurance can fit into any lifestyle, so finding the right coverage for you is easier now than ever. It is important to have peace of mind that you have protected your loved ones from debt and extra fees in the event of your passing. Below are five reasons why you should have life insurance!
1. Support your family & Inheritance
If you’re in a situation where your family depends on your income, then life insurance is essential – in conjunction with income protection insurance. Ensure you cover all your bases when making decisions about insurance. This is especially important for families with young children or young adults who may find it difficult to sustain their current standard of living. Associated costs that need to be covered may include household tasks – like cleaning, cooking, childcare or laundry, anything to keep a family happy and healthy.
Whether or not you have other assets to pass on to your heirs, an inheritance can be created by buying a life insurance policy and naming them as beneficiaries. This can be a good way to set your kids up for a solid financial future if need be – and provide any extra funds for any needs that may arise.
2. Debts and other expenses
As well as providing extra income to cover the everyday costs of living, your family may need to use the insurance to pay off any outstanding debt, mortgage, credit cards or car loans. As well as cover the expenses of the funeral and other associated costs that could turn into thousands of dollars extra. This removes the financial burden on any spouse, parents or adult child – by not adding to the emotional burden they’re already going through.
In general, it is recommended the coverage amount for the life insurance policy should be at least the total of all the debts. Thus, ensuring whoever ends up with the money will have enough to pay off your outstanding liabilities. Whether it’s student loans or a mortgage, relieving that burden from your family is a great thing to consider now rather than later.
3. Financial security
Knowing your children will be taken care of when you’re gone is a parents’ dream. So they not only get a quality tertiary education but also have the funds there to get married or start a business. For this reason, choosing coverage when your kids are still at home is essential to creating that financial security.
Providing ‘backup’ funds for your family can give you, and them, peace of mind, that regardless of what happens – your family (and additionally yourself) will be financially set.
4. Time & Options
When the ‘breadwinner’ of the family passes – the rest of the family is forced to make tough and dramatic decisions much too quickly for their grief. This is not the time for them to be making good choices, as they will be emotionally vulnerable. Providing a life insurance fund gives these families an adjustment period, rather than them having to move or find a new job immediately.
This gives your family a choice by providing them with the funds to help pay off debts, to help meet housing payments and living expenses, funding university for your children and much more.
5. Peace of mind
Not knowing when we’ll pass away can be stressful. So whether it’s today, tomorrow or in 40 years – it will happen eventually. But more than anything, life insurance can help protect a family in an uncertain period of life. Without a doubt, having life insurance will bring you and your family peace of mind. It’s something you can control, and you won’t have to question whether your family is taken care of when you’re gone. It protects your family from the unknown and helps them ease the pain, at least financially.
Looking through all your options when it comes to different life insurance coverages is essential to find out what works for you and your situation. If you would like to discuss life insurance, and how you can benefit from it in the long run contact us today.
