As we get older, it is important to have a plan in place to make sure that our families are supported if something were to happen to us. Just like travel insurance for the over 50s is used to cover costs if something goes wrong overseas, life insurance allows you to cover a little closer to home. It is a way of making sure the loved ones you leave behind can stay afloat financially in the event of your death. It is especially important if you have dependents such as a partner or children. There are a variety of benefits that come along with taking out life insurance, so if you’re interested to know why you should have it, read on.
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Pays off debts
If in the event of your death, you still have debts that need to be paid, they are not automatically cancelled out just because you aren’t here to pay them. The debts will be passed on to close family members. If your family members cannot afford these payments, this is where your life insurance comes in. The insurance pay-out can be used to make sure that it is possible for your close family to pay off the debts you’ve left behind, allowing them a stress-free future.
Providing for Children
Life insurance is especially important if you have children to provide for. In the event of your death, your family will have to live on one income only, leaving your spouse to afford everything that comes along with providing for your children including funds for their future. Providing for the family and saving for their future may become impossible on only one income, especially if you’ve not managed to generate much of a savings pot between the two of you so far. The pay-out from your life insurance could be used as a contribution to your children’s future even when you’re gone.
Covering funeral expenses
The adds up to just over £4000 and could potentially be more depending on the circumstances. If you die unexpectedly, you could be leaving your family a hefty bill towards your burial. Life insurance is a way of making sure in the event of your death, that your family can fund your funeral without leaving them with any financial hardship.
Fund your partner’s retirement
If you’re the main earner in your household, your partner may not have enough money to retire comfortably when you’re gone. Even if they have saved for their own retirement, if their wage is not healthy enough, comfortable retirement in their later years may not be possible to achieve alone. Life insurance can help towards providing a sum of money to help your spouse towards retirement more easily.
Life insurance is important for the people that you leave behind, especially in the event of an unexpected death. It allows us to prepare for the future and helps to make sure all costs are covered, leaving our family stress and worry-free.