However hard it may be to grasp this – all things come to an end. Festivities, countries, and, of course, our lives. Keeping this in mind should influence how we plan our future, as we inevitably become old and have dear people we will leave behind, who will have to go on without us. And because we know what will happen in the end we should do our best to prepare for it accordingly.
One modern way of dealing with this is getting life insurance – expecting an agreed premium after your death or if terminally diagnosed. Although still relatively rare, it is a very elegant way of dealing with this financially and should be planned out for ahead.
Securing Your Spouse
Retirement can be a great financial burden on many people and it is usually only as a couple in a household that some make ends meet. When one passes away it falls upon their spouse to continue living not only without them but without their financial support too.
In the way they are usually planned, life insurance policies state that the money is to be received by whoever the beneficiary decided. Asking at Staebler Insurance we see that the common practice is that both spouses usually decide on each other so that they can be financially secured when the other one dies. This is one sure way of protecting some you love “from beyond the grave”.
Covering Burial Costs
Funerals are an expensive ceremony, second only to weddings. Even if you are not able to witness it, most people love to see their loved ones go out in style and elegance, all of which costs money. And as the number next to the dollar sign keeps rising the family will have to make difficult decisions where to cut corners. Once planning for seniors is complete, you will have ensured that the family won’t have to make these decisions and that they can stick to just honoring you and your wishes.
This very uncomfortable situation can be avoided by having at least the basic life insurance, which premium would be enough to cover these expenses and leave a bit of overhead for them to organize what is left behind.
Life Insurance and Peace of Mind
Another benefit of getting a life insurance policy is how it can affect us psychologically. Thinking about and coming to terms with your own end is very troubling for most people and it opens up many uneasy questions – what will happen to my soul and body, did I live a good life, what will I leave behind, etc.
Turning to religion is one way of finding answers, but for earthly and mortal dealings it is better to have some concrete solutions. Life insurance can, at least, put your mind to rest that someone you care about will not be left penniless when you pass away.
Protecting your Children
If you work in a high-risk profession or have a family history of earlier-than-hopped-for death, you will also have to take into consideration what will happen with your children if you die too early. Today’s job market makes it extremely difficult for young people to find a well-paying job for years, and if they are left without their parent’s financial support that can mean complete disaster for them.
Although they’d always rather have their parents alive and well – if you cannot give them that, at least give them an opportunity to finish their education or help them manage until they are completely independent.
Key-Person Insurance Policy
This form of life insurance isn’t only restricted to a natural person, but can be bought by legal entities as well. Companies that have very important personnel, such as high-profile engineers or business managers, for example, can face a huge loss in profits if they are suddenly left without such a professional.
That is why some companies opt to buy life insurance for their more important employees, so they can have a backup cash deposit in the worst-case scenarios until they manage to find someone who is able to stand in their place.
Adding on Investment Assets
When building a financial portfolio you may not think that a life insurance policy would add anything to it – but it most certainly would. There are certain tax advantages to be had – the cash value in this type of policy grows tax-deferred. The premium can also have a very stable value, as it shouldn’t be affected by changes in the stock market or by the economy. Most of all, it is easily distributed because when you liquefy it, it can go to any number of heirs.
Everything can be avoided, except death and taxes. But even if that were the case, you could try to avoid taxes affecting your death – getting life insurance is the way to go in this case and means that you care not only for yourself but for your loved ones too.
