Family life insurance is an absolute necessity for every family. This helps provide the financial assistance that the family may require in the event of the death of the head of the family. There are various causes of death and untimely death could be caused due to accidents or some other preexisting health conditions. People die every single day and most often no one is prepared for this sudden loss. Very often, people don’t like thinking about the consequences of death. In the US alone there are more than 100,000 deaths that occur every year due to accidents. Now there are diseases that rank high on the list of causes as well.
What could happen to your family if you are not around to provide for your loved ones?
This is a question that most of us should be asking ourselves, especially if you have dependents and if you are the head of the family or the single earning member of your family.
You must ask yourself this question now, as you will no longer be able to ask that question after a fatal accident. It is just the same as being diagnosed with some deadly disease.
How will family life insurance help in protecting and providing for your family?
First and foremost, family life insurance can be used to pay off a mortgage loan if you have one. There are many families in the US that live in a home that has a substantial mortgage and this is typically the biggest debt that one can carry. Life insurance is also helpful in paying off credit card debts as there are millions of families in the US who live with huge credit card debts. These pressures of debts can be greatly reduced with life insurance plans.
Family life insurance is also helpful in providing for the children’s educational expenses or any other special needs that they might have. This could be used to fund their University or any other educational program. There might be some families that may need help for their children with special needs and they will have additional expenses such as extra coaching or child care. All of these expenses will continue even after the death of the head of the family.
Family life insurance is also very helpful for your spouse as it can bridge that gap between the time of the death of the husband until the time she finds some new source of income or some other form of employment. You will have to take into consideration the amount that your spouse will need in the event of your death until she can successfully transition into a new job.
In general, as you get older and as you start getting pensions or Social Security, the need for life insurance will decrease. Hence, if you have managed to build up enough financial resources, then the need for life insurance may not be very great. But, in the present day scenario and the high cost of living, it always makes sense to be well prepared with adequate life insurance.
