Here’s Why Every Family Needs Life Insurance

Life insurance is often one of those topics few people want to think about, much less openly talk about. From researching the different types of policies to getting quotes and finalizing the policy, signing up for a policy can be a lot of work. This often leads many to put off purchasing life insurance for too long.

Here is why every family should have a life insurance policy.

A family inside their kitchen

To Cover Final Expenses

Both funeral and medical expenses can mount up quickly and easily turn into thousands of dollars. Even if you have medical insurance, it may not cover all of the costs of your treatment. Funerals can cost $4,000 for a basic cremation to over $15,000 for a casket and flowers. (1) Some consumers decide on purchasing a burial insurance policy. However, often times the funds from such policy are not enough to cover the true cost of a funeral

Pay for Your Children’s Expenses

A life insurance policy can help ensure that your children live a comfortable life. Having a life insurance policy can help pay for childcare and other needs, such as sports, tutoring, or any other expenses that can arise during childhood.

This of course also includes college expenses. Even if your children are years away from college, it will still be very expensive. Having a life insurance policy ensures that your child will be able to attend the school of their choice without having to worry about money.

Pay Outstanding Debts

An outstanding debt obligation such as a mortgage can be completely paid for using the funds from a life insurance policy payout. Ideally, consumers should have a large enough policy to cover the entire balance on the mortgage while still having additional funds left for other expenses. If you’re currently making payments on a long-term loan, you can use the funds from your policy to pay it off.

Keep Your Business Safe

It’s common practice for business partners to take out a life insurance policy on their partner in order to guarantee a smooth transition if one of the partners passes. Business partners purchase a life insurance policy after signing a buy-sell agreement that triggers once a partner in the business dies.

This makes it so that the living partner does not have to scramble to find another partner or secure a loan to continue operations. This also makes it so that the heirs of the business don’t have to begin working in a business they may not be knowledgeable about.

Who Needs Life Insurance?

There are many groups that can benefit from having a life insurance policy. Those just starting a family should consider purchasing a policy to ensure their spouse and children have a secure future. Your rates may be more affordable now rather than in the future.

Homeowners can also benefit from the coverage a life insurance policy provides. Having a life insurance policy can ensure that your debts are covered while allowing you to avoid purchasing additional mortgage insurance.

Any person with consumer debts should also consider a life insurance policy to ensure all debts are paid off. If you pass and leave no way for your heirs to cover your debts, your assets may be lost and not get passed down to a person you care about.

Final Note

Now, it’s easier than ever to get quotes for a life insurance policy. Having a life insurance policy can help guarantee that your family will be stress and worry-free if anything were to happen. Start your search online to find the right policy for you and your family.

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Sources:
  1. https://www.moneysmart.gov.au/life-events-and-you/over-55s/paying-for-your-funeral

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