Whether you are planning to start a family or you are already part of a family, life insurance is something that should be given some thought. As a parent or guardian, you may have dependants in your family who rely on you financially. Should anything happen to you, it is possible that those people may be faced with a poorer life without your income.
Your partner may also benefit from life insurance protection, especially if they earn an income. Some families nowadays take out life insurance for both the parents, just in case. Despite this coverage being a worthwhile investment for many families, Allianz have revealed that just 48% of people participating in a survey were covered by life insurance.
Life Insurance Benefits
It is human nature to want to protect loved ones from losing quality of lifestyle should anything unfortunate occur. Thinking ahead and arranging protection from life insurance will give you peace of mind. Because your family’s financial circumstances are likely to vary over time, it is difficult to determine what money they may have left if you are no longer there.
When someone dies, their loved ones may end up paying for memorial fees, funeral costs and any debts that the deceased accumulated during their lifetime. The dependants of the deceased will also be left without financial support. If the deceased had an active life insurance policy at the time of death, some or all of these costs may be covered.
How Much Cover Do I Need?
When you think about the costs your death would involve for your next of kin, any outstanding loans, mortgage payments and funeral expenses should be taken into consideration. There are also regular bills to consider, such as rent or mortgage and utilities, and basic expenses such as food, clothing and transport.
If the main breadwinner of a family passes away, the family’s income will decrease, whereas the bills may not. This may result in your partner or family footing the bill for a multitude of things. However, with life insurance some of these expenses may be covered, allowing your family time to grieve without the stress of financial concerns as well.
Look at life insurance policies to see the level of cover, what death benefit is paid out, precisely what is and is not covered, and when the policy expires. A policy must be active at the time a person passes away for the beneficiaries to receive a payment.
What Can Life Insurance Do for My Children?
If you have children, their well-being is of course extremely important to you not only now but looking into the future. Life insurance can help you to ensure that even if you should pass away, your family will have help to bear the costs of raising your child to adulthood, including education, living expenses, and family holidays.
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