Being a good steward of your finances means making good choices about where your money should go. Having your money working for you is the best way to use your resources. So, when it comes to insurance, many people convince themselves that they would be better off using that money somewhere else. The monthly payments you make on insurance could be used towards a fund that will eventually create for you some income for your retirement. However, in that scenario, you, or your spouse, remain alive and healthy for the duration. If anything was to happen to you, then your plan has failed, and you will be worse off than if you had taken some precaution. Life insurance protects you in many ways, here are some of the most important aspects.
- Life Insurance Protects your Family: Life is not predictable, and the last year has shown us that our best laid plans can be changed by circumstances far beyond our control. There are no guarantees that we will live a long life without injury or illness. It is prudent to consider at least a certain percentage of probability that something will change in your future that will affect the way you earn money. At the time of an untimely death, it is too late to make changes and to rearrange financial matters. But if you had put in place a life insurance policy that ensured that the lifestyle of your family members could continue, the time of loss will be much less traumatic.
- Funeral Costs: Funerals have become very expensive, but it is part of culture and law, so the costs are not something that can be easily avoided. At the time of an early death, family members are in a period of distress and mourning. The last thing you want is to have additional financial stress added to their grief. Life insurance can make sure that your family can have the ceremony that they want to have, to give you the respect you deserve, but also so they can feel they have done the right thing.
- Debts and Property: In your life there are certain assets that your family depends upon for life. Your house is the main one, but also, cars, businesses, and properties that belong to you, and you intended to pass on or keep in the family. The most responsible and economically sound decision you could make would be to insure those items, so that the debts or the unpaid portions are covered in the case of a death. That way the lives of your loved ones can continue in the way you had hoped, and your legacy will be one of someone who prepared for the future and took care of the important details.
Life insurance isn’t a comfortable issue to talk about, but it is one of the most wonderful gifts you can give to your family. Having insurance is being able to help your loved ones well into the future. It is an inexpensive way to have security, right from a young age, before you have been able to build up assets of your own, and a way to keep those assets in the family forever.