Everything associated with your death becomes harder without life insurance. While policies come in different sizes with their own particularities and specialties, the primary purpose of life insurance is to increase the financial stability of your survivors. Your loved ones will be facing many issues should you die unexpectedly including: worrying about paying final expenses, paying taxes and debts, and maintaining their standard of living. The right life insurance alleviates all three issues at a time when your family is already dealing with significant upheaval.
One of the most significant reasons to buy life insurance is to cover funeral or burial costs. If you don’t have life insurance, these costs will be left to your loved ones. The average funeral costs around $9.000. If you collect Social Security, your family can only expect a payment of around $250. A paltry sum in comparison. Additionally, workplace policies - if you are lucky enough to have one - are usually not enough. Employer-offered life insurance is typically for a small sum or an amount equivalent to one year’s salary. To have the funeral your family deserves and take the stress out of paying for it, it is important to invest in a life insurance policy.
Another factor to consider when thinking about life insurance is the burden of taxes and debt. If you die without insurance leaving unpaid taxes and debt, the expenses may go to the estate. This can prevent your surviving family from getting any financial benefit from your estate. Life insurance helps ensure that your family receives your estate.
An additional benefit of a life insurance policy is to protect against loss of income, especially if you are the primary earner in your household or are a dual-income household. Life insurance gives your loved one’s time to properly grieve and plan before making any other major life decisions. The last thing they need to be worrying about in that moment is whether to sell the house. Indeed, depending on the size of the policy, the payout may serve this purpose for a long time.
Though many people start thinking about life insurance when they start having families, life insurance is important at all stages of life. Don’t fall into the trap of believing that if you don’t have a spouse or dependents, you don’t need life insurance. Purchasing life insurance when you are young and healthy is significantly cheaper and is one thing you can do now to protect your family’s future.
Intelli Choice offers of full range of insurance policies from a variety of carriers. Call Intelli Choice to discuss your life insurance needs and protect your families’ future from the burdens of covering your final expenses, debts and taxes, and loss of income if the unthinkable happens.