Most people understand the importance of car insurance or health insurance, but some still do not realize how valuable life insurance can be. A life insurance policy is a contract that states the insurance company will pay the insured’s chosen beneficiaries after the insured passes away. Life insurance is an absolute necessity for some people, but it may not be right for everyone. Is it right for you? Here are some of the many people that should get life insurance:
Losing a loved one can be incredibly difficult on a family-not just emotionally, but financially as well. Dependents are usually the ones who suffer the most since they lived off of the deceased’s income. This is especially true if the dependents are still years away from becoming adults and being able to earn money on their own. No one wants to imagine their loved ones struggling to make ends meet as a result of their death, which is why breadwinners should get life insurance. An insurance policy can ensure dependents are able to pay for their living expenses even after the breadwinner of the household is gone.
Stay-at-home parents may not be the breadwinners, but they still play an important role at home. If a stay-at-home parent passes away, the other parent will have to pay for childcare. Since childcare can be so expensive, the surviving parent may have a hard time covering the cost. Fortunately, a life insurance policy can be used to pay for childcare and any other services the family needs now that the stay-at-home parent has passed.
People who don’t have children or a spouse may think life insurance is unnecessary, but that’s not always the case. Life insurance is not designed solely to provide for the insured’s dependents. The money that is paid to the beneficiary can also be used to cover the deceased’s funeral expenses. Funerals can cost thousands of dollars. If you do not leave behind enough money for your loved ones to cover these costs, they will have to pay for the funeral out of their own pockets. Single adults can avoid this problem by obtaining life insurance to cover the cost of their funeral expenses.
Life insurance can also be beneficial for people who have a mortgage on their home. The money that is paid to the beneficiary can be used to cover monthly mortgage payments after your death. This means your family will be able to afford living in the home after you pass away.
Anyone who owns a business should think about whether the business will be able to survive after their death. Some business owners would like operations to shut down after they pass away, while others would prefer that the business remain open. If you would like the business to continue after your death, life insurance can help make this happen. Life insurance can be used to cover business debts, infuse cash into the business, and help heirs pay off estate taxes. Without life insurance, whoever inherits your business may have no other choice but to sell the business in order to pay off these debts and taxes.
It’s never too early to start estate planning, but if you wait too long, it could be too late. Let our experienced attorneys create a plan for your estate that is in your loved one’s best interests. Contact The Nice Law Firm at 317-269-7311 to schedule a consultation regarding your needs.