A notable number of Americans fail to engage in an appropriate level of financial planning. Some people do financially plan to some degree, but they overlook or otherwise elect to bypass purchasing life insurance. The reality is that are six key reasons for maintaining a suitable policy of life insurance.
Protect Your Family
One of the most important reasons why you should obtain and maintain a policy of life insurance is to protect your family. In other words, if you are a parent, you should have life insurance. If you’re not a parent, but are married or have a significant other in your life, you should have life insurance.
The reality is that if you were to die unexpectedly, or at a younger age after a debilitating illness of some nature, you leave those you love without a source of income they well may have come to rely upon. By having a suitable life insurance policy you provide a safety net for your family. An appropriate level of insurance coverage ensures that the standard of living your loved ones have come to expect is maintained even in the event that you’re no longer around.
Leave an Inheritance
If you are like many people you want to be able to leave something for your loved ones when you pass on. If you are also like many people, you may have limitations on what will end up being available in the way of an estate when you die. With a life insurance policy, you can designate beneficiaries to receive money from your life insurance policy when you pass on.
Cover Funeral and Associated Expenses
Funeral and burial costs can prove to be significant. You certainly do not want to saddle your family or other loved ones with the responsibility for dealing with your final expenses.
Another important reason why you will want to carry life insurance is to make certain that your funeral and final disposition expenses are met without burdening your loved ones.
In this day and age there exist moderately priced life insurance policies that are tailored towards paying funeral and associated expenses. Funeral homes are used to working with these insurance policies. If you’ve done funeral pre-planning, a funeral home can be designated appropriately as a policy beneficiary. Any remainder above and beyond the costs of a funeral and associated expenses can be given to another beneficiary.
Pay Off Debts and Expenses
If you’re like many if not most people, you are carrying debt. Oftentimes a person passes on with outstanding debt. In addition, you very well may have other expenses outstanding, perhaps those associated with your final illness. In any event, another important reason why you should maintain a life insurance policy is to make certain that any outstanding debts or expenses are satisfied after you’ve passed on.
You certainly want to avoid someone else facing responsibility for certain debts and expenses. For example, you don’t want your spouse to be burdened unnecessarily with debts and expenses that you could address via life insurance. If you were buying your child an automobile, you don’t want him or her saddled with coming up with means for making those payments as a result of your death.
Enhanced Financial Stability
We’ve already discussed how life insurance can ensure that your family’s day-to-day expenses are met. A policy of life insurance can provide you with an even more enhanced level of security and stability.
Of course, you want your family’s daily expenses covered in the event of your death. However, you very well may be concerned about other issues down the road as well. For example, you likely will want to be sure that the cost of higher education is met for your children. You may want to be certain that money is available to ensure that your children have perfect weddings The reality is that if you are like most people you likely have an array of different types of goals and objectives of this nature that a suitable policy of life insurance can ensure are met when the time comes.
Peace of Mind
When questioned about the biggest issue faced on a day-to-day basis, a considerable number of people say “stress.” The demands and machinations of every-day life can be significant. You don’t need to make the situation worse by worrying about a lack of a plan should you pass on.
One of the truly important benefits associated with life insurance is that maintaining this type of coverage can provide you with significant peace of mind. For example, by maintaining life insurance, you’ll have the knowledge that your family will be taken care of in the event you are not around. You won’t have to worry about your funeral and associated final expenses.
In the grand scheme of things, peace of mind cannot be undervalued. Arguably, the peace of mind derived from having appropriate life insurance coverage truly is invaluable.
If you lack life insurance at this juncture, you will want to seriously consider the risks you take by not having this type of coverage. You will want to take a look at the benefits associated with life insurance discussed here as well as others that may be unique to your own situation. At Ahmeti Wealth Management, we can assist you in making decisions regarding the type and amount of life insurance that makes the most sense for your situation.