Benefits of Life Insurance
Life insurance helps provide short- and long-term financial support to those you leave behind after death. Common benefits of life insurance include:
- Coverage of Final Expenses: Talking to your loved ones about your own funeral arrangements can be rather uncomfortable, but preparing them ahead of time can relieve some of the burden (especially financially). Even the most modest of arrangements can cost several thousand dollars, and a life insurance policy can take that cost off their shoulders.
- Support for Surviving Spouse and/or Children: Life insurance can help replace the loss of your future income, as well as cover daily living expenses, childcare, and education for your family. This benefit is particularly key for those who are/have been the primary breadwinner.
- Repayment of Debt: Survivors often inherit the debt of the deceased, such as credit card and student loan debt, mortgages, and medical bills. Some of this debt may be forgiven or reduced, but don’t count on it. Life insurance can alleviate the threat of financial ruin.
- Personal Legacy: Some people choose to get life insurance in order to leave a legacy, perhaps in the form of a family trust for their children or an endowment to a favorite charity or educational institution.