Do I need life insurance?
It is common to hear unfortunate stories every day about people dying from heart attacks, car accidents or in other sudden, unexpected ways. This usually makes people think about what would happen if they were the ones in such situations. For people who have family members they would leave behind, the biggest concern is usually what would happen to them. Unless a person has life insurance, survivors could be left in a difficult position. There are 9 very good reasons for purchasing life insurance, which include the following.
1. Debts:
Nearly every person has debts. For those who have considerable amounts of debt, it is important to think about who will pay these debts after death. Surviving family members often pick up the tab. With the loss of one income, they will already face difficulties, but debts only worsen those problems. Many surviving family members lose their homes or vehicles after the death of a main earner who does not have life insurance.
2. Lifestyle:
Many families have traditions and hobbies, but these lifestyle activities may be sacrificed if a main wage earner dies without life insurance. For example, vacations, holiday trips, memberships to sporting clubs and funds for other hobbies will be eliminated or severely limited.
3. Future Needs:
When most people think about life insurance, they forget topics such as college for children or retirement for a spouse. Losing the only income or even a supporting income can affect how much is saved toward these goals. Life insurance can provide enough to fill those gaps.
4. Emotional Stress:
Surviving family members will likely have sleepless nights, stress and may even experience depression. Many people have a difficult enough time overcoming their depression that they require counseling or medication, and these needs cost both time and money. Even if the grief period is healthy, the last thing family members need to worry about is money.
5. Legal Issues:
There are several legal issues to consider after death. A person’s estate is often subject to probate proceedings, which will leave assets tied up or at risk. Life insurance will provide tax-free money to survivors to handle expenses and live on during this difficult period.
6. Family Care:
As parents or other family members age, it is important to think about who will care for them. Retirement benefits are disappearing, and nursing home care is not always the best option. People who are planning for life insurance should also plan to provide for their aging parents if applicable.
7. Child Care:
Child care expenses are an issue for both working and non-working spouses. If a non-working spouse dies, the working spouse will either have to take time away from work or hire someone to take care of the children. If a working spouse dies, his or her income will need to be replaced to provide for the children. Medications, medical care, clothing and everyday supervision are all important expenses to consider.
8. Remembrance:
Everyone wants to be remembered after death. For every person, this is something that will be different. Whether a person wants to leave a sizable donation to a charity or just provide sufficiently for his or her family, life insurance is the best way to do that.
9. The Unexpected:
Life insurance is important for both spouses in a family. One may buy life insurance and think the other will take care of surviving children. However, if the other spouse also dies shortly afterward, this could leave children and next of kin with major problems.
Any person who is eligible for life insurance should buy it. Life insurance premiums are almost always less than people expect them to be. Find out how much life insurance you need. Tomorrow is not guaranteed, so the best time to start shopping is today.