10 Things Your Loved Ones May Have to Live Without if You Don’t Have Life Insurance
Being able to provide for their family is a point of pride for many people. In the case that they pass away prematurely, it simply is not an option to cut clothing, housing, and groceries out of the budget. However, many parents gamble the wellbeing of their family by failing to obtain the right amount of life insurance. Life insurance provides money for your kids, as well as your spouse in the case that you pass away. If you do not have a policy, then your family will be left to find a way to replace the income they lost. Here are ten big things that life insurance will do to ensure the well-being of your family in the case that you pass away.
1. The Funeral You Deserve
An average funerals cost over $6,000. This amount can be devastating to those who do not have a life insurance policy to cover it. However, a policy will cover the cost of a funeral so that your family can focus more on grieving their loved one then on how exactly they are going to pay for your funeral.
2. Paid Medical Bills
If you pass away due to an accident or illness, then that could make it so that there are hefty medical bills that need paying. Hospital bills can get up into the tens and thousands of dollars, which can be overwhelming for families that have just lost their loved one. However, if you have an adequate life insurance policy, it means that your family does not have to do something drastic to take care of a medical bill such as declaring bankruptcy. In fact, medical bills are the number one cause of bankruptcy in the United States, which is something you do not want your family to be a part of.
3. Paid Off Mortgage
If you and your family are currently making mortgage payments for your home, then you have likely figured out how much of your home you can afford depending on your household income. If you are the breadwinner in your family, and you pass away, your family will run the risk of foreclosure if they are unable to make the mortgage payments. Having an adequate life insurance policy will aid your family in making their payments or may even pay off the mortgage entirely. This means that they will not be forced to uproot or to take a loss on selling the family home.
4. Living Expenses
Your family will feel the impact of losing an income. However, this is especially the case if your spouse is a stay-at-home father or mother, or even if he or she has a smaller income than you. Having an adequate amount of life insurance will allow your family to supplement their income so that their living expenses can be handled. Even in the situation that you spouse decides to work again after you pass away, they can do so on their own time instead of finding a job as quickly as possible.
An adequate amount of life insurance will let you rest easy knowing that even without you, your kids’ college fund will be financed. Additionally, if your children attend or if you want them to attend a private school, then a life insurance policy will make sure that they can so do so in the case that you pass away. Moreover, if your spouse wants to work then the life insurance money can be used to cover the cost of childcare. It can even help with the schooling of your husband or wife in the case that he or she wants to attend classes before entering the workforce.
6. Benefits While You Are Still Alive
A life insurance policy can even benefit you when you are still alive. If you decide to purchase a whole life insurance policy, then the cash value of that policy can aid in covering expenses such as a wedding or a home while you are still alive. This is because as you pay the premium for a whole life insurance policy, there is a cash value that accumulates, and you can have access to these funds while you are still alive. However, keep in mind that the cash value of a whole policy is taken out through a policy loan, which does accrue interest. Additionally, it will decrease its cash value and death benefit.
7. A New Venture
Your loved one can use the death benefit of your policy to start a new business if he or she is so inclined to do so. The truth about starting a business is that banks will not hand out money to a business that doesn’t already have revenue. This means that if your spouse would like to start a business, he or she would have to take money out of their savings or by asking a family or friend to borrow money.
8. Time With Family
When a loved one passes away, it can be absolutely devastating for a family. In many cases, the best thing for your family to do is spend time with each other and grieve. However, without a life insurance policy your spouse can be quickly pushed into finding a job without taking the time to grieve and heal as a family. On the other hand, with a life insurance policy, he or she can remain at home for however long it takes without worrying about finances.
9. Paid Off Debts
Many US citizens have significant financial debts such as car loans, credit card balances, and mortgages. If you pass away while your family is still in debt, then your family will be entirely responsible for paying it off. If they are in a substantial amount of debt, then the added financial responsibility of paying it off without you can be crippling. However, with a life insurance policy, your family’s debts will be covered in the case that you pass away, which will protect them from financial difficulty.
10. Donation to Charity on Your Behalf
If you and your family are a charitable bunch, then it may interest you for your family to give money to a charity under your name after you pass away. However, without the funds to take care of themselves let alone others, this can be the last thing on their mind. With a life insurance policy, on the other hand, you can ensure that your family is taken care of and that you leave an altruistic legacy behind. A life insurance policy is an extremely useful way of providing your favorite charity with a donation without the added financial burden on your family.
To Link To This Page