More than 100 million Americans have inadequate life insurance. For the most part, many people are not entirely knowledgeable about what life insurance is and why exactly they need it. Before finding out what kind of coverage it is that you need, it helps to know why you need life insurance and how it can help you better your life as well as how it can help secure your family as well.
There are plenty of different reasons why life insurance is necessary, but the three main reasons why others get this kind of insurance may inspire you to look into getting adequate coverage for yourself.
The Final Expenses
One of the main reasons why people do and don’t consider purchasing life insurance is for final expense coverage, otherwise known as funeral preparations and costs. Many people are aware of just how expensive funerals can be, and depending on your wishes or your religion it may be necessary that your body is prepared and taken care of in a certain way. These services will cost our remaining relatives money and these bills can sometimes run thousands of dollars. According to the National Funeral Directors Association, the median price of a funeral with a casket is $7,000 or more. Many funeral directors report that families without life insurance often have to cut down on funeral services or may even have to ask for donations in order to fund the funeral at hand. Even with a modest term life insurance policy, your loved ones can easily take care of these expenses.
Not many people want to consider the end of their days, let alone what their funeral will be like, but death can occur at any time, whether you are sick or not. There is no such thing as getting life insurance too early, as many people sometimes consider life insurance policies to be a thing that comes with retirement and old age.
Speaking of retirement, one of the other main reasons you will want to consider life insurance is to provide for those who depend on your income. When you retire, you will want to make sure that you can live comfortably without working, but when it comes to life insurance you will want to make sure that family members and any others who rely on your income for housing, food, medical expenses and more can also live comfortably in the event that you pass on. If you have young children then there may be childcare costs or college funds that go dry. A spouse may not be able to retire and will need to remain or go back to the workforce to support themselves. There are many different scenarios that may befall a family or a community of people.
The amount of life insurance that you need is generally based on two things: your salary and the number of years until you are set to retire. One of our insurance agents can help you account for other factors such as Social Security benefits, a partner’s income and your current savings as it stands.
When it comes to insurance coverage, it absolutely helps to get as much coverage as you need, but it also helps to remember that some coverage is still better than no coverage at all.
When it comes to a person’s budget, a mortgage tends to be the biggest single line item on the list. If you were to pass on, would your family be able to afford your mortgage without the contribution of your paycheck? If something were to happen to you and your family is suddenly left unable to make payments, then they could lose the house which may have several other troubling implications. Jobs and schools may need to change, your family may need to downsize significantly in order to afford a living space, among many other things.
With life insurance, however, an outstanding mortgage can be paid off so that your family need not worry.
Having to cope with a death in the family or community is difficult enough, but things can be made even more unbearable and challenging in the face of financial hardship as well. If you want to protect those you love then you should absolutely look into purchasing a life insurance policy that covers everything you need. One of our agents here at Dempsey, Weiss & Associates can help you look at everything in order to make sure that you and your family get the perfect policy.