Life Insurance Is For Your Family, Not You

Life insurance is one of the only financial products that you can buy that does not directly benefit you, unless you use whole life insurance to save for your retirement. Life insurance does offer you a priceless benefit; peace of mind that in the event you die unexpectedly, your family will not suffer financially. They will still grieve but at least they will not have to worry about keeping a roof over their heads while they are grieving.

If you have anyone who would suffer financially without your income, you owe it to him or her to protect him or her from the hardship your premature death would bring. If you are the family breadwinner, life insurance will replace your income, allowing your family to maintain their lifestyle. Not only will life insurance replace your salary, it will give your family the cash they need to replace the benefits received from your employer, such as health insurance and retirement savings plans.

Even if you are a stay at home parent, your family will still need proceeds from your life insurance to hire someone to take care of the housekeeping and childcare duties you performed. Depending on the amount of life insurance you can afford, the proceeds may allow your spouse to stay at home and be a full-time parent while your children are young. No one likes to think about their own early death but it is even harder to think about your spouse working 12 hours a day to pay the mortgage, the bills, and pay off your funeral expenses.

These days it is so easy to find cheap term life insurance that there really is no excuse for anyone with a family not to have it.

Single people need life insurance too, although they can generally get by with a smaller term life policy. Term life insurance is very affordable for young, healthy individuals. If you are single and you have decided you do not need life insurance, imagine who would have to pay for your funeral and burial expenses and pay off your student loans. You need to have life insurance if you do not want your parents to have to pay these bills.

If you have a child, regardless of your marital status, you should have life insurance. If you are a single parent, the person you designate to raise your child should be the beneficiary of your life insurance so they will have the money to raise your child without financial hardship.

An insurance agent will help you determine the amount of life insurance you will need to buy to meet your family’s needs after you are gone. You should periodically review your policy with your agent after you have a child, buy a house or pay off your mortgage so you are not over-insured or under-insured.

About Michele

Michele Andrea Bowen has been a financial consultant for just shy of 22 years. Her client base ranges from individuals, to families, to small and medium sized businesses. Her expertise extends from daily money management, to insurance, to planning for retirement, as well as managing finances in retirement.

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