Ask yourself, "Is there anyone in this world who would be affected by your death?" This question is all one needs to ask to establish whether or not life insurance is needed. The answer is, "It is needed".
Getting a life insurance policy is really more an issue of personal responsibility. We all come into this world at the expense and joy of the ones who love us. When we leave this world, we each have had the power and opportunity in life to ensure that in death we can eliminate the financial grief that will come with the pain of losing a loved one.
What do you want to make sure happens in the case of your death? At the very least you ought to take the necessary steps to handle your final expenses, such as possible medical bills and your funeral. In addition to the expenses involved with a person's passing, there are the financial questions concerning those family members who have survived you. In addition to taking care of the ones you care for, there may be some other personal goals and plans you want implemented.
Life insurance is a question of planning to protect your interests in the case of your death.
Life insurance is financial planning as finances are an ongoing entity regardless of ones lifespan or when it ends. One must make plans to take care of their responsibilities in life, this takes money. In death, certain responsibilities continue on until they are resolved.
While alive, it is the responsibility of the individual to establish their financial needs and goals. Then come up with a financial plan to address these issues for your family before you pass on.
Perhaps you are a parent; whether or not you are married or single, you have a responsibility to your dependents. In the case that you are married, then your spouse is another consideration. You should ensure that your spouse will be supported financially so that your children can be taken care of as well. Make sure your spouse will not be suddenly burdened with your debt and also make sure your spouse will not be burdened with the responsibility of compensating for the income you once provided. That is irresponsible for anyone to overlook.
Even if there are no children in the picture, but you are married, you still need to evaluate the needs of your spouse. The cost of the accustomed life style, and how much either partner contributes to this should be evaluated and used in the decision process for how much insurance you may want and need.
Say you are a single individual with no children, you should still make sure that your final expenses will be covered so that you will have the peace of mind that your final wishes will be carried out and the cost will not fall on someone else. Life insurance can also be used as a tool for planning an estate which is something independent of marital status or parental status.
Covering children with a life insurance policy is an unpleasant thought, but it is a step that will offer financial protection. And that in itself is "hugely pleasant". So do it. This is an option that will afford the comfort of knowing that any arrangements and medical costs will be covered by a sum of money outside the regular finances of the household.
As a retired individual, the cost of your final expenses should not come out of your retirement fund. You may have a spouse who is relying on the retirement fund for the rest of their life. In a case like this, both partners should be covered to protect the other from the final costs of their loved one. "Have you done this?
You should estimate this cost at a minimum of your current annual income multiplied by five years to provide a basic level of transitional financial support for the beneficiary. You could estimate this cost at a maximum of your current annual income multiplied by at least ten years to provide a more comprehensive level of transitional financial support for the beneficiary. Make sure to take into account all your financial responsibilities. For example, if you handle the payments for an elderly parent's living costs, the costs of your children's schooling, including college and annual costs of clothing and books; then include an amount that will be sufficient to cover any emergency situations your family survivors may encounter.
With so many things to consider, each individual must take great care to plan out their finances on all fronts during life, so that they and the surviving family is taken care of after their death. You are the only one who can decide what you need taken care when you die. In this light, do not leave anything to chance. Just make sure all your needs are correctly, accurately and sufficiently covered.
No comments:
Post a Comment