One of the decisions that we have to face sooner or later is to take out insurance that covers our death. Many people wonder if it is worth having life insurance coverage or is it just one more expense.
Are there enough reasons to take on such expenses every month?
Here are core reasons why you should give life insurance a rethink:
1. Protect the family after death
Life insurance helps to reduce the economic impact among people close to the insured after death. For this reason, this policy is essential in households that are financially dependent on the insured.
The policyholder chooses the beneficiaries, who will receive compensation or a previously fixed income in the event of their death.
2. Get insurance to cancel the mortgage.
An important reason to get insurance is the possibility of canceling the mortgage in case of death.
A home loan puts a big strain on the income of any family that is still paying for their home. The death of one of the family members can destabilize your economy and risk homeownership.
Most homeowners are paying off mortgages. Life Insurance can cancel the loan with the insured capital and free the family from bank burden, thus securing the family homeownership.
Many banks offer their clients better loan conditions if they link it to insurance or other financial products.
3. Cover the risk of disability
One thing to think about when purchasing Life Insurance is to include disability coverage among your guarantees.
Suffering a permanent disability can change anyone’s life. Not only does it bring the stigma of being handicapped, but it is a situation that inevitably drags family and friends.
Without the possibility of working and, at times, forced to bear expensive treatments, disability can cause difficult economic situations in the family. A good Life Insurance can offer alternatives such as advancing the insured capital to meet these expenses.
4. Cover the most urgent expenses after death
Death does not usually warn, and when a person leaves us, many of their debts surface, and it is the family that has to face them.
We are talking about pending personal loans, account or credit card charges, or expenses related to the death itself. That person may not have Burial Insurance, and, amid the grief, the family has to face a costly funeral.
All these urgent expenses can be covered with the right Life Insurance.
5. Ensure the future of the children
The future of our children worries us, and being parents often leads many people to consider insurance. Life insurance offers various solutions to assure the financial independence of children.
For example, many Life Insurances may include in their terms a clause that guarantees the continuity of the studies of the children in the event of a parent’s death. In this way, parents ensure their children’s studies aren’t affected.
In any case, Life Insurance compensation may be enough to cover the expenses of the children.