Why is Life Insurance Important?

Why is Life Insurance Important?

June 18, 2018

Talking or thinking about death can be hard especially when it relates to someone you love. But the one guarantee we all have is that at the end of our lives we die.

Due to death being an uncomfortable subject to many people, most people don't take time to think past their death to what happens to their loved ones when they die.

Planning for your loved ones after your passing is especially important when there are people who depend on you financially. Life insurance can help:

  • Pay for funeral expenses
  • Pay the bills and living expenses for survivors because of a loss of income
  • Pay off any remaining debt for the deceased
  • Pay to continue operating and funding a family business
  • Pay for future educational needs to surviving children
  • Help fund a surviving spouse's retirement needs

This is just a short list of what life insurance can do to support your family and loved ones after your passing. The money that is paid out after your passing will be a tremendous help for those that receive it. Instead of worrying about how to pay for your funeral or pay for bills you normally took care of with your income, your family can focus on grieving your loss and remember your character which is more important than anything.

The next hurdle to overcome with life insurance is: who needs it? In my opinion everyone needs it but here is a list of people who absolutely need it:

  • A married couple
  • A married couple with children
  • A single parent
  • A stay-at-home parent
  • An individual/couple with adult children
  • Retirees
  • A business owner

All of these groups of people have someone that depends on them financially. Whether it's a spouse, a young child, an adult child, a dependent parent, employees of a business, etc. It's even strongly recommended that single people obtain life insurance to at least help their family pay for burial expenses in the event of their passing.

The true point of life insurance is to take care of the people you leave behind. Talking about death and considering our own deaths is morbid and uncomfortable but it's a fact of life we must be prepared for.

The death of a loved one is a huge tragedy by itself, don't add the difficulty of a financial burden to those who love you. Prepare and make sure your family is well taken care of.