There are many instances in life where something may go wrong such as being involved in accidents or natural disasters. When these things happen, loss of lives may occur. The devastation that the surviving family members may feel may vary from family to family. Nevertheless, each family will feel grief. If the head member of the family dies, his/her family will not only feel grief.

The surviving family members will also feel the financial burden even long after death; unless the head of the family had purchased a life insurance policy or final expense insurance from https://insuranceforfinalexpense.com before his or her death. 

Owning a life insurance policy may be one of the best investments that a person, especially the head of the family, will ever make in his or her entire lifetime. Why is this so? Let us see the different reasons why a life insurance policy is important. 

Financial Protection for the Family

The first reason is that a life insurance policy will protect a person’s family by providing them with financial support after the policyholder’s death. If the policyholder is the head of the family, the remaining family members will receive a specific cash amount after the policyholder dies. This cash may be used to cover the funeral expenses of the policyholder and may also be used to pay for recurring bills and future expenses. 

The coverage that a policyholder must purchase should be substantial enough to take care of these following expenses:

Immediate expenses

These are the things that the remaining family members must take care of immediately after a policyholder dies. These expenses include funeral service expenses, cost of a burial lot, medical bills, and any unsettled financial obligation (unpaid credit card bills and other debts) that the policyholder left. 

Recurring expenses

These are the expenses that the remaining family members will need to pay regularly to continue living comfortably. These expenses may include house rental or mortgage payments, electric bills, cable, gas and other utilities, and groceries. 

Future expenses

These are the expenses that the remaining family members are expected to be faced with in the future after the death of the policyholder. These expenses may include tuition for college education of the children, wedding expenses of a daughter, and expenses to be used for the retirement life of the surviving spouse. 

For the surviving family members of the policyholder to live comfortably even after the policyholder’s death, it is important to take into account all the immediate and expected expenses that the surviving family members will have to face. Insurance experts will advise that to ensure a substantial amount of coverage for the remaining family members; the amount should equal at least ten times the policy holder’s annual salary. However, if the family does not have any savings, the amount of coverage should be increased to at least 15 times the annual salary amount.

Improved Quality of Life after Retirement

The second good thing about having a policy is that if the policy is a permanent life one, it may allow the policyholder to accumulate savings on the part of premiums paid. The money earned or accumulated through this savings option may be withdrawn even if the policyholder is still alive.

This means that policyholders can use the money during their retirement for whatever purpose they deem fit. However, when the policyholder withdraws against the accumulated earnings, they may opt not to pay the amount back. If this happens, the number of death benefits that the beneficiaries will receive will be adjusted accordingly. 

Purchasing life insurance is truly an important investment. However, a policy buyer must be aware that different types of insurance carriers will offer different protection types. This is why policy buyers must be aware of what type of insurance will suit their needs. 

If the policy buyer is of good medical and physical condition and is still very young, he or she is qualified and can choose either the permanent life policy or the term life policy. A permanent policy will cover the holder with life insurance for the entire duration of his or her life. 

On the other hand, if the policy buyer is not as healthy, he or she may still choose to purchase a term life policy or a no medical exam life insurance policy. However, these types of policies will have significantly higher premium rates. For example, smokers are assessed by insurance company underwriters as high-risk candidates for insurance and are expected to have a shorter life span than the healthy candidates. 

Policy buyers need to know the importance of having final expense insurance or life insurance from https://insuranceforfinalexpense.com when choosing to invest in one. However, they should also be aware of the other aspects of choosing a policy. 

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