Four Essential Reasons to Have Life Insurance
Article by Jeremy Smith
There are four essential reasons to make sure people have life insurance. No matter how hard a person tries to get around it, these factors will always come up, and might eventually push a person to obtain it.
The insured party, if married, has to be certain his spouse will be financially taken care of if he dies, and doesn’t have enough of his own savings and investments for her to live on. The insured wouldn’t want his surviving spouse to have to get a menial job, just to keep food on the table when he’s gone. So it’s crucial he takes out enough on his policy, and pays it off consistently for all the years until his death.
Children also have to be thought of and looked after. Even after they are grown up, enough insurance money should be arranged to be on hand, when the death of the financial principal occurs. Youngsters often require more money than an ex-spouse, since they have many more years ahead of them, and might require funds to pay for heavy expenses such as a college education, or a down payment on their first home.
One generation removed should always be considered in the will when taking out a policy. The person’s beloved grandchildren, if there are any, need to be financially protected to the best of the person’s ability. Whether it is term life, or whole and universal life, it’s essential that the grandchildren be put down as beneficiaries, and be apportioned off for the proceeds in a binding will. They will eventually grow up, and might need a strong nest egg, to be able to launch their monetary lives on the right foot.
Last but not least, are the final expenses that need to be covered, and usually prearranged for. The beneficiaries should not see any portion of this specific amount of money. But these funds do need to be set aside for the funeral arrangements, a possible cremation, the burial expenses, the coffin, and the plot and headstone.
The costs can quickly add up and soar well into very high figures, so it’s very important to determine the funeral costs well in advance, and then prepay them in total. This procedure will also relieve some of the post death stress of the relatives, who will have enough sadness to deal with when death occurs.
While alive, the principal should research the lowest costs for the burial procedures, and select a provider who can perform a quality, respectful ceremony that his family will be proud of.
About the Author
Author is a freelance copywriter. For more information about Life insurance, please visit http://www.guardianinsurance.com.au/.