What happens when we die? Not spiritually, but to our loved ones left on earth? Financially?
Funerals are expensive and if you’re a breadwinner, the lose that income. Enter, life insurance. It can act like a second income for a while and pay for end of life costs.
Want to know, is life insurance worth it? Read on.
What Is Life Insurance?
Younger people aren’t often taught about life insurance, or why it’s important. Like car insurance, your life insurance is a protection policy for when and if things go wrong.
But unlike car insurance, life insurance covers something much bigger: your death. None of us want to think about our demise, but it could happen at any moment.
If you have young kids or you take care of your parents (PS you’re the sandwich generation) – will there be enough savings to keep things going if you died?
If you had a life insurance policy, your death benefit could pay for caretakers, for mom or for the kids.
You pay a premium per year, then pay in per month. It’s another bill to pay, but it’s necessary for those of us with a lot of responsibility on our shoulders.
The Benefits of Life Insurance
If you’re still grappling with the idea of another bill every month, here are some other reasons why you should get a policy.
1. You Get a Death Benefit
In the event of your death, you get a certain sum. It changes per policy and based on how long you’ve been paying. That money can go towards your funeral – which is more expensive than you’d think.
The average funeral costs 7,000 and a new study has shown average costs can range from $4,560 to $9,847 depending on where you live. Many families can benefit from having a burial insurance policy in place. There are lots of companies to choose from. Over time, the Mutual of Omaha burial insurance product has become one of the most popular options for consumers to choose from.
If you have a big policy, you can even leave part of it to charity, if that’s part of your lifestyle. Additionally, as you age and your kids become financially independent, you can also sell your policy for cash to help with retirement and medical expenses.
2. You Can Set Inheritances
If you have kids or grandkids, or even nephews, you can leave them money in the event of your death. That money, depending on your estate documents, can be designated for a cause, as their education.
It’s not quite a trust fund, at least with the average policy, but it can help their parents afford college – and help them avoid decades of student debt.
3. It’s Like Supplemental Income
If you pass away and you’re in a two-income earning family, your partner will still need help with the bills. Your life insurance payout will act like your half of the household earning, at least until it runs out.
This gives your partner time to mourn and adjust, while they figure out what to do next and might be able to take some time off work.
Find out more about what Top Quote Life Insurance can do for you and your family, this was only a glimpse.
Is Life Insurance Worth It?
If you have people that depend on you, have properties or debt, then yes – life insurance is worth it. The younger you start your policy, the longer your policy amount builds.
Stop asking yourself is life insurance worth it and find the right policy for you.
Learn more about money management here.