Why do you need life insurance

Most insurance benefits the person insured.  If that person has an accident, their financial interests are covered.  Life insurance, on the other hand, is really not intended to benefit the insured individual.  Instead, life insurance is intended to help the loved ones of the insured person.

Why do you need life insurance?

Life insurance can help guarantee the financial well-being of loved ones in the event of the death of the insured person.  When a family supporter dies, the family looses income and may have to pay the bills on much less money.  A good life insurance policy can help the family of the insured person recover and move forward to a successful financial future.

How life insurance can protect a family

Life insurance can do many things to protect a family in the event of a loss.  It can replace lost income, pay off a mortgage or other debts, liquidate credit card debts, fund education for children, and take care of funeral and other final expenses. 

The last thing any family needs when they lose a loved one is to worry about their financial future.  Life insurance can help cover a family so that they can mourn and appreciate the life of the loved on they lost instead of worrying about their unknown financial status.

How much life insurance is needed?

Married couples who have children should have life insurance policies that are about 8-10 times the amount of the annual salary of the household. However, there are also special requirements that might need to be considered.  If there is a large mortgage on the home, more life insurance might be a good idea.  If there are several children that will want to go to college someday, larger policies are recommended.  Or if there are family members with long-term disabilities or perhaps someone who needs extensive medical care and treatments, the policy amounts should be larger.

There should be a life insurance policy for each parent, even if one parent stays home with the children.  Buyers have to think about what could happen to the family in the event of the loss of either or both parents.  If the working parent dies, there would no longer be an income.  If the parent who stays home dies, the remaining parent would have to think about child care expenses and plenty of other details.

It is not even a bad idea to take out a small life insurance policy on a child.  In the event of the child’s death, the parent would at least be able to cover the final expenses without having to scrape money together.

Life Insurance=Peace of Mind

Life insurance is a simple way for a family to gain peace of mind.  There is no way to tell what the future holds.  There are endless options and if a family wants to safeguard their financial future and their standard of living, life insurance policies are really the best idea.

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