Determine who life insurance benefits.
Are you in the market for life insurance? Perhaps you’re not even sure if you need the coverage or not. Life insurance can be tricky to understand, but that’s no excuse to give up the coverage. If someone will suffer financially when you die, chances are, you need life insurance. It is designed to provide cash to your family after your death to replace your income and help your family meet important financial needs like funeral costs and college funding.
Below are just a few people who need coverage.
Married couples: Many people mistakenly believe that life insurance is only for people with kids. In reality, it’s for anyone with dependents. Once you get married, you have a person relying on your income. If one person in a marriage were to die, the surviving spouse might struggle to pay off debt, pay for the monthly expenses, and retire as planned. Life insurance is there to step in and help the surviving spouse.
Married couples with kids: Most families depend on two incomes to make ends meet. If you died suddenly, your family will still endure all their financial obligations but may be at a loss without your income. Life insurance can help with this aftermath, as well as helping to provide funds for children’s college education.
A single parent: A single parent wears many hats. With so much responsibility resting on your shoulders, you need to make sure that you have enough life insurance to safeguard your children’s financial future.
A stay-at-home parent: You may not make a salary, but you do everything from childcare, transportation, cleaning, cooking, and other household activities. The replacement value of these chores is severely underestimated. With life insurance, your family can afford to make the choice that best preserves their quality of life.
Furthermore, the following may choose to select life insurance:
- Parents with grown children
- Small business owners
- Homeowners with a mortgage
- Parent of a special-needs child
- Someone who wants to provide an inheritance
- People concerned about paying for their own funeral expenses