Last week, I wrote about three things that your life insurance policy might not cover. This week, I will highlight three of the most common things covered by life insurance plans, so for those of you asking why you would even need one, this blog is for you. While the previous week’s topic was very important, it was a bit morose; this blog, I think, has a much more positive, upbeat tone to it.
Large Loans
Let’s say you took out a student loan for your child, or maybe you took out a loan for a house or something along those lines; what would happen to your family in the event of your passing? If you are the sole income earner, that could prove devastating to your family. With a life insurance plan, these concerns and fears can easily be laid to rest, knowing that the money that your family would receive would allow them to continue making the necessary payments.
Raising Children
If you are a policyholder with a child, then this should come as no surprise to you: children are tough to raise. And by that, I don’t necessarily mean that they are difficult because of their personalities and hormones; I mean that they are difficult to raise because it costs so much money to raise them. And if a parent passes, it can make raising that child even more difficult. Anything from college tuition to food and medical expenses can be paid with whatever money is given to your beneficiaries.
Funeral Expenses
Funeral expenses tend to get overlooked by grieving families, which is understandable. That being said, it is important to remember that the average funeral costs anywhere between $7,000 to $10,000. This is why life insurance is so important; the money received from a life insurance policy can be used to cover the funeral cost, thus saving your family even more grief and headaches.
It is a good feeling knowing that your family will be taken care of in the event of your untimely passing. That is why life insurance is so important. And these are only a few of the things that a life insurance policy can cover. Definitely look around, ask questions and find out which policy is best for you and your family.