The Importance of Life Insurance

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What would happen to your family if you never made it home from work today? If you were to die, would they be able to continue to live in the same house, and still be able to make the rent or mortgage payment? How can you be sure that you can provide for your family even after you’ve left this planet?

Well, through life insurance, you can make sure your family is protected, even in the event of your death. Consider it your last act of love and kindness that you can perform. In general, your life insurance policy should be about double what you owe on your house. This is just a quick rule of thumb that works for most American families. It really depends on what your debt is.

The idea of having a good life insurance policy is to take care of your family, right? Well, then. You’ll need to have enough to pay off the house and any major outstanding debts, pay for your burial or cremation, and still leave enough that your family is able to take a little time off to grieve properly. No child or newly widowed man or woman wants to immediately jump up and go back to work after having lost a loved one. However, if it comes down to a choice between that or starving to death, most will force themselves to go. How much better it would be to have $20,000 in reserve, so they could take a few weeks or a month off and be ok. With a properly sized life insurance policy, you won’t have to worry about your family needing to rush right back to work, and you’ll know that they will be able to take the necessary time to heal a bit before heading back out into the world.

As you can no doubt see, life insurance serves many practical purposes. Obviously paying off debts so your family is not overburdened in your absence is very important. However, life insurance is equally important for your family members in order to allow them grieving time, and provide them with a little time to heal. Life insurance is not something that should be dismissed. It is something that should be seriously considered and talked about between partners. If you don’t discuss it today, and put your plan into action, it may be too late to do anything about it. Nobody knows when their time here will end, however, you can rest assured that your life insurance will be there to help your family through the rough time, and allow them a little more freedom of action than they might otherwise have.