Life insurance is one of those monthly expenses that people hope not to benefit from. However, life is unpredictable. Many people will die well before their estimated life expectancy. This is why life insurance, whether term or whole life, is an important purchase to make.
Those who lose a spouse or parent who is a primary provider can expect to see their household income drop if that breadwinner dies before reaching financial independence. An insurance policy can absorb some of the income loss that occurs at the same time as a severe personal loss. Term insurance can provide high death benefits at relatively low cost, and a policy can replace years of income. A whole life policy that’s intended to provide income in later life can still provide a decent death benefit even if it’s likely to be lower than a term payout. Life insurance can allow those who have lost a loved one to take some time to cope with that loss without having to worry about where their next meal is coming from.
Many households are in debt. Whether it’s from a home mortgage, car payments or medical bills, this debt can take up a large percentage of a family’s income. A lack of a life insurance policy can really exacerbate this problem, but a hefty insurance payment can help a family get started on a new normal without having to worry about how they will pay off debt.
Funerals can be quite expensive. Even a basic service will cost thousands. Additionally, even those who were relatively healthy before a final illness might rack up some serious medical bills in their final days. A life insurance policy can help offset these expenses so that those who are left can avoid having to add the stress of paying for a funeral to the stress of losing a loved one.
Life insurance is one expense that most families cannot afford to be without. Those who are extremely wealthy might be able to forego it, but those who have not achieved financial independence will want to have a policy. This especially becomes important for those who have dependents. Providing for them even in death is an important step to take to ensure that they do not needlessly struggle should an unexpected loss hit them.