Is Life Insurance For Everyone?
In today’s economy and society, life insurance can be a necessity. Unfortunately, about 40% of American families don’t have individual life insurance. But for families living on the edge financially, life insurance is especially important because if the family was struggling financially with the primary money earner how much more will it struggle when he is no longer there? In addition to the loss of income, loss of the primary income earner can also result in additional expenses. Life insurance can help cover the cost of the funeral, medical costs and other expenses pertaining to losing a loved one. Without life insurance, the family could easily spiral into a world of debt and not have any way out.
Assurance with Life Insurance
Adequate life insurance can guarantee that the family is taken care of even after the primary giver is gone. There are several different policies, plans, and prices for life insurance. Purchasing a minimal value life insurance plan is better than having no plan at all. Today if a person dies, even a basic funeral can cost $7,000. The same 40% of household without life insurance are the same 40% of households that can not afford for their primary provider to pass on. Loosing a loved one is hard enough and the financial stress can be overwhelming. Life insurance provides financial relief for those grieving a loss. Life insurance can serve a variety of purposes. As mentioned it can be used to cover funeral and possible medical expenses. It can be used instead of Mortgage Protection Insurance to pay off a mortgage, it can be designed to replace an income and lost wages in order to help a family stay afloat while grieving a loss, or it can be used to pay for a college education for your children.
Who Needs Life Insurance?
For a single person who is lives alone and does not have any dependents, life insurance is not terribly important. Perhaps the most they need is enough to cover their funeral expenses and any outstanding debts so they don’t pass that burden on to family members. However, if a person has other people depending on them financially, then purchasing life insurance becomes much more important. Someone supporting a spouse, a single parent with children, a single individual caring for their parents, or a family man or woman providing for their entire family are the types of households that need life insurance. After determining if your household needs life insurance, the next step is figuring out how much life insurance to buy. A wide variety of companies offers life insurance policies and they are usually glad to give you free Life Insurance quotes.
How Much Life Insurance Do You Need?
There are many factors to consider when thinking about buying life insurance. A primary breadwinner should consider the wages that would be lost should he/she pass on. Will there be additional childcare expenses? The number of children or dependents a provider has is an important piece of information that can help him determine how much life insurance to buy. If you want to ensure that your family is well provided for you need to consider the expenses they will have without you and then purchase a plan that will meet those needs. Of course all of that needs to be weighed against the cost of the life insurance policy. Certainly all of us would love to provide our families with a $10 Million life insurance policy if one fell out of the sky and landed in our laps but… at what cost does it become prohibitive?
Unless you are independently wealthy, purchasing life insurance is a must for families with children under 18 years of age. No family should have to suffer the loss of a loved one, much less a primary provider but life insurance can give a family financial stability and peace of mind especially during that time of adjustment immediately after a loss. Although life insurance might not be for everyone, it makes a good “safety net” for those who have it.
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