3 Important Reasons Why You Need A Life Insurance Policy
Are you an adult with one or more small children? Do you want to make sure that your children are provided for no matter what happens to you? Although some people view life insurance as something that's relatively unimportant and extraneous, an insurance policy can actually be an important part of your future plans. There are a number of reasons why you should seriously consider investing in a life insurance policy which may or may not apply to your current situation. A few of these reasons include:
Cover funeral expenses: An ordinary burial can cost thousands or even tens of thousands of dollars. It's not uncommon for people to put themselves into debt to bury their loved ones. Whether you pass on while your children are still small or it doesn't happen for many, many years and your children have children of your own, you probably don't want to put that kind of burden on them. You could set aside money for a funeral, but it's easy to accidentally spend this money on things like broken appliances or car repairs before you actually pass on. A good life insurance policy will ensure that all of your final expenses are paid for.
Pay for college: If you are involved in a fatal accident on the way to work, you obviously will no longer be able to make any contributions to a college fund. As a result, it's possible that any kids you have may not be able to further their education after high school. A good life insurance policy will help to make sure that at least the first couple years of their college education will be taken care of. Even if the insurance money isn't enough to pay for a full degree, paying for a year or two will help enable your child or children to be able to afford the rest of their degree.
Fewer legal squabbles: While a life insurance policy doesn't guarantee that a particular person will get money after you pass on, it can be more easily enforced than wishes that have been laid out in a will. For example, you might direct that your various possessions be sold or otherwise distributed to certain people. However, if one of your relatives somehow accesses and carries off these items before the will is read, it can be extremely difficult for your beneficiaries to prove that is what actually happened. If your beneficiaries are young children, it could be a decade or more before they are able to comprehend that their inheritance has gone missing. By this time, it would be too late to do anything. An insurance policy, on the other hand, will only pay out to the person named in the policy unless legally directed otherwise. This will help ensure that you are in better control of who will actually inherit your estate.