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An unexpected death raises many important questions that are whispered between survivors. Immediately following, “what happened?” is the inquiry about the existence of a life insurance policy. Remarkably, financial advisors continue to find people, of all ages, who have never purchased life insurance coverage. But, it is always suggested that anyone with dependents must consider the costs of not having life insurance.
Let’s go through a few major points that divert our attention to the benefits that having an appropriate life insurance policy can have.
Immediate ExpensesIn our spending culture, few families have saved thousands of dollars that rest in a savings account for use when the unthinkable happens. Retirement accounts, stocks and bonds are investment instruments that are not immediately available. In the event of a loved one passing away, the surviving family members will have immediate expenses that must be covered within the first 30 days.
Transition CostsLegal expenses arise as the survivor discovers the details that must be addressed to live without the deceased. Large assets cannot remain in the ownership of the person who is no longer living. Attorneys expect full payment of fees to address these significant legal transactions.
Long-term ImpactThe short-sighted decision to have a family, buy a house and create a business without life insurance will be life-changing for those who are left behind after a tragedy. In our fast-paced world, unfortunate events happen every day. An appropriate life insurance policy in such a scenario would preserve the family’s dreams and sustain the lifestyle for survivors.
Before we conclude the discussion, let’s understand that decision to buy a life insurance policy is unpleasant since people don’t enjoy speaking about mortality. But it’s time we start taking this seriously and change with times.
Annual financial reviews allow the family to make wise decisions that include life insurance coverage for both adults. Current financial obligations should be considered when determining how much life insurance is required for the next year. Any future adjustments can be made without undue effort from the financial manager. Similarly, new life insurance policies can be added, and obsolete policies cancelled to prevent hardship for the family before the next review session.
Brian Johnson is a Blogger with Select Quote, a leading provider of term life insurance. The website contains a range of resources for consumers to learn the ins and outs of insurance, including types of insurance, rates, and estimates for how much insurance consumers typically need based on their lifestyle.
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