Life insurance is a type of insurance that offers support for a beneficiary after you pass away. You can purchase it at any time in your life. With life insurance, you can choose the amount of money you want to be given to your family in the case of an accident, death, or if you are in a state where you cannot wake up. You can also get coverage for permanent disability or brain damage if you’re still alive.
Your surviving family member or beneficiary can also use the insurance to pay for your funeral costs. However, this decision is often up to them. If you leave a will, they can keep your wishes in mind.
For families with children, life insurance is a valuable tool. Although you may think that nothing can happen, many children lose their parents daily and do not have financial support to get through it. A life insurance plan is a cheap way to avoid this and leave your partner and your children with support for life.
Here are the top five benefits of using life insurance for your family.
1. The Younger You Are, the Cheaper It Is
The great thing about life insurance is that it is cheaper for you the younger you are. Young parents in college may find that they only have to pay $10-$20 a month for their policy. Some more extensive plans can be more costly. Often, bundling life insurance with other insurance policies (such as car and home insurance) can save you more money.
Your rate may be fixed for a specific time period, which means taking the deal early on is a great idea instead of paying more later. Even if you’re an older couple with children, you can find a policy that works for you by bundling. If you have a good credit score, your insurance rate may be lower.
2. Give Your Family Room to Grieve
Grief is something most humans experience a few times in their lives, especially during hard times like the pandemic. Having a life insurance policy in the event of accidental or unexpected death is so important. Your partner and others in your family may take time off of work and can face worries about paying bills.
If you were the only income provider in the family, your partner might be left not knowing what to do. With a life insurance policy, your family has room to grieve and also has the money to keep your home and finances in check. Once they’ve gone through the grieving process, your partner can find work and not have to worry about foreclosures or debts.
3. Put Your Children Through College
A huge motivator for many parents to work hard is to help put their children through college and give them a better life. Life insurance can do this for you.
Obviously, no one wants to die young. However, in the event that you did leave your children without a parent, you’d be able to put money in savings to help them follow their dreams and make something of your legacy. That’s something that is invaluable.
4. Offer Savings for Those You Love
Health insurance policies often offer upwards of $15,000 or more to your family after your passing. This amount of money can mean everything to someone who hasn’t had it before. Your family can put this in savings and use it for something important.
Although it is ultimately up to your family what they use the money for, you get to choose who the beneficiary is. When you sign up for the policy, let the person know what your wishes would be for this sum of money if anything were to happen. Although it can be an uncomfortable conversation to have with family, it is essential.
5. Protect Your Family
Above all else, signing up for life insurance is indeed a way to protect those you love, as well as yourself. Even if you do not have an accidental or unexpected death, injury and disability can happen. Having this policy in place often gives you the money to go through hospital care, get the medical devices you need, and continue living normally.
Having a protection plan in place is essential, and that’s why so many insurance companies stress the importance of this valuable policy. It could end up being the most important and life-changing policy you’ve ever had!
If you’re interested in more family topics, check out BetterHelp’s family advice section here: https://www.betterhelp.com/advice/family/