When times are tight people often look for ways to save money. Due the the GFC many people have been struggling and opted to cancel insurance policies, despite the risk associated with that course of action. Life Insurance is often one of the policies that people think they can temporarily be without. This article will share some of the top reasons why you should renew your life insurance policy or take one out for the first time!
Life Insurance is protection of the potential loss of income that results from an individual passing away. So if you are the bread winner in the family and you pass away, life insurance will compensate the family for lost earnings. The beneficiary of the life insurance policy will receive the money, ad you can actually nominate multiple beneficiaries in your will.
One of the main reasons for this type of insurance is for peace of mind. What would happen to your family if you suddenly died in a car accident? Would they be able to pay the mortgage or would they be living on the street within 6 months? Life Insurance would replace your lost income so the family can maintain the same standard of living.
Life Insurance is also useful for paying any medical bills associated with your death. What happens if you were in a car accident, then in a coma for 6 months, wracking up $500’000 in costs while in hospital? Could your family afford the bill or would they be forced to sell the family home. Life Insurance provides a financial buffer for the family ad allows them to hopefully keep the family assets secure. You wouldn’t want to be the cause of your family losing their home would you?
Life Insurance is also fantastic for taking care of any other bills associated with your estate. What happens to your car payments, mortgage repayments, credit card bills if you suddenly pass away? Your family inherits all of that debt. A Life Insurance policy will allow your family to take care of those bills and instead of worrying about their financial stability, they can grieve then get on with their lives. If you are carrying a lot of debt, you don’t want to burden your loved ones with it.
This kind of insurance can also provide for your children’s future. You could have enough life insurance to pay off your mortgage as well as leave them a healthy deposit for their college fees. This can make a real difference in the quality of their life.
Life Insurance can also provide some emergency cash for your family. At a timne when your family is in grief over your death, you don’t want them to be struggling financially.