Is it really worth having life insurance ?
What happens if the breadwinner of a family of four suddenly dies of an unexpected heart attack? In addition to the emotional turmoil, the remaining family may face financial stress unless they have life insurance. One of the greatest benefits of life insurance is financial protection for loved ones.
Of course, there is no substitute for a family member who has passed away, but the money from life insurance helped the man’s wife and two young children gain financial peace of mind. Life insurance gave them the space they needed to grieve. And those are just a few of the benefits of life insurance.
No one wants to think about their death, but it’s a part of
life. Planning ahead with life insurance can help your loved ones cope with
financial hardship when you die—and some policies can provide living benefits
for you, too. Learn more about the benefits of life insurance and learn how to
evaluate your life insurance needs.
How life insurance works
Life insurance is a contract between you and a life
insurance company. You promise to pay premiums over the term of the policy.
In return, your insurance company promises to pay the face
value of the policy to your beneficiary if you die while the policy is in
force. Your beneficiary could be your spouse, children, or even a charity.
Is it really worth having life insurance?
In most cases, yes! One of the benefits of life insurance is
that there are so many different types of policies to choose from. This makes
it easy to find a policy that fits your needs and budget. Life insurance can
help your family pay bills, cover funeral costs, and more without worry.
What types of life insurance are there?
There are several types of life insurance, but they all fall
into two categories: term life insurance and permanent life insurance. A term
policy provides coverage for a specific period of time, called the term. At the
end of the term, the policy expires, and the insured is no longer covered.
Permanent insurance covers your entire life, as long as you
pay the premiums. Permanent policies also include a cash value option to help
you build cash savings from your premium payments.
Get life insurance benefits to ensure your peace of mind
There are pros and cons to life insurance, but it is a great
way to help protect your loved ones from financial stress.
With a life insurance policy, you can help protect your
family from the financial impact of your death. It can allow them to grieve in
peace without having to worry about how they will be able to pay the ongoing
bills.
Even if you don't have dependents or significant assets, I
recommend considering life insurance as a way to help cover your final expenses
if you die suddenly.
Learn more about life insurance with our free course
"Life Insurance 101"! Don't forget to follow the Clever Girl Finance
YouTube channel and the Clever Girls Know podcast for more top financial tips!