Life insurance is a sensitive subject that most people do not want to talk about. Some would argue that life insurance is a morbid subject and gives the impression people are just waiting for the chance to cash in on someone’s untimely death. However, that is not the case at all. In fact, life insurance is something that should be openly discussed within every family.
The purpose of having a life insurance policy is to reduce the financial burden on the family members who are left to deal with a loved one’s personal business after they have passed away. In the case of spouses, money from a life insurance policy could go toward paying off joint debts so that the surviving spouse’s credit is not compromised. The proceeds from a life insurance policy can also be used as an interim income source to replace the income lost by the spouse who has died. It can provide a much-welcomed financial cushion to the surviving spouse so that they do not have to worry about how they are going to manage alone financially in the midst of their grief. Proceeds from a life insurance policy can also be used to provide for minor children left behind after a parent’s death to pay for college tuition or to establish a trust fund for them to be awarded once they reach a certain age. (Read full story of Insurance here)
Alternately, money from life insurance policies can also be used to cover burial expenses for the deceased if prior arrangements were not made. The great thing about life insurance policies is that there are no stipulations on how the proceeds can be used. The beneficiary on the policy can do with the proceeds what they will, which ensures that the funds will be available to be appropriated where they are needed most - whether it be for bills, funeral expenses or other debts.
Some employers may offer life insurance policies through an employee insurance program. If your employer is one of them, you should definitely investigate that possibility. Sometimes when you sign up for life insurance policies in a group setting such as through an employee pool, your premiums can be considerably cheaper than if you were to have a private policy written on your own. However, if life insurance is not offered through your employer, you can still find many affordable policies that can be specifically tailored to meet your needs.
If you have not discussed life insurance policies with your family, you should take the time to do so. You owe them the peace of mind that comes from knowing that all their needs will be taken care of, should something happen to you. You owe your children the assurance that they, too, will be provided for in your absence. Having a life insurance policy in place is the perfect way to accomplish both. Contact a reputable life insurance company or agent today to discuss your life insurance needs. They can show you the best way to plan for your family’s future and ensure their financial comfort.