3 Things Your Life Insurance Policy Will Help To Pay For
Life insurance is an important part of every person's emergency preparedness. Although you hope that you will never have to access a policy, it is vital that you have good coverage so that if your family does need your life insurance they are well taken care of. Here are a couple things that your life insurance policy will cover in the case of an emergency.
1. Living Expenses
If you are the primary breadwinner, you should be sure that your life insurance policy has enough to keep your family afloat for a while after you pass away. Imagine the grief that your family will feel after your death, now add on top of that financial insecurity. Assume that your spouse has been a stay at home parent caring for your children. Now with your death, they must immediately return to the workplace and put the children in child care all to put food on the table. Even if you aren't the primary breadwinner, your spouse may need to pay for childcare, take some time off work for grieving, and even pay for extra help around the house and therapy for themselves, or your family.
Although the life insurance policy won't cover their living expenses for the rest of their lives, it should provide them with enough money so that they can take their time getting back on their feet.
Although it would be wonderful if your debt died with you, it is simply not the case. There are some debts that will be forgiven with death, such as student loans, but in most cases your debt will simply pass to your family. This is why you should factor into your life insurance policy how much your family will need to pay off debts so that they don't have creditors looming over their heads.
3. Funeral Expenses
One of the great things about a life insurance policy is that it is a pay on death policy. That means that once the insurance company has a death certificate, they will start paying out on the policy. Funerals can be expensive, and very few families have thousands of dollars set aside for such an occasion. This is why a life insurance policy can be so helpful. In the midst of planning the funeral and grieving your loss, your family doesn't have to worry about how to pay for the funeral. Or worry about doing the funeral on a budget because they can't afford it.
As you can see, a life insurance policy will help your family in many ways. This is why you should always carry a life insurance policy. Contact a company like Matt Roenker Insurance Agency for more information.