XMAS SPECIAL – How to Protect Christmas
It might not be the average Christmas conversation, and can seem daunting, however spending 30 minutes discussing your life insurance will be more valuable than you can imagine.
Many people go through life quite comfortably without life insurance. Their reasoning is simple. They do not think it is valuable as a component of their day to day life. After all, it only pays out when you die, not prior to terminal illness/death, in many cases. Yet, for those who have a family or financial obligations, having this type of insurance in place is just as important as having any other type. In fact, it can be even more important to some people.
Prior to making a decision about purchasing life insurance, I would suggest that individuals should take the time to meet with a financial consultant who will be able to discuss their own circumstances and advise them accordingly on their specific needs.
It may be that you have cover through your work or an existing personal policy, however take the time to ensure that this is enough, if so, then that’s fantastic news!
Do you have dependants?
For many life insurance purchasers, the most important reason to invest in a life insurance should focus on who is left behind. For example, if parents are raising their children, having life insurance in place can provide some level of peace of mind. If one of the income earners from the family passes away unexpectedly, the family has the financial means to go on without a significant negative impact on their ability to pay for the same quality of life they are living now.
In other words, if you were to die today, would your family have the financial ability to pay for its bills without any struggle? Are you an income earner within the family? And, do you want to ensure your loved ones are able to keep living the same quality of life they are living now? If the answers to these questions are yes, then it makes sense to hire a professional to handle your purchase of life insurance. This money can go towards providing for your loved one’s needs, just like you would likely do if you were still there to meet those needs. In this way, any individual who is contributing to the family’s finances should, in fact, have life insurance to provide for these needs.
Who else should have life insurance?
There are many other reasons to contribute to a life insurance policy. The actual flexibility of these plans differs from one area to the next. However, there are some instances for which purchasing this type of insurance is very important, including the following:
- Do you have a mortgage? If you owe on a mortgage, it is essential to have a policy that will pay off the mortgage should you die. This can reduce the expenses left behind for a spouse, for example.
- Do you wish to leave behind funds for a specific need? Because a life insurance policy can be a key part of an estate plan, the proceeds from it can easily be used for a specific purpose, such as contributing to the educational expenses of a family member or paying into a trust for a grandchild. There are many ways you can use life insurance as a component of your planning in this manner.
- Do you want to ensure your family is not burdened by your final expenses? Funerals, burial, cremation, and other final expenses can be very high. In many instances, these are a hardship to a family that does not have a significant amount of cash on hand to pay for such expenses. If your death would be a financial hardship for your loved ones, this type of insurance can help minimize those costs.
It is important to discuss your specific needs with an insurance professional prior to making a decision about which type and how much life insurance you need. Most people can benefit from this type of policy simply because it leaves behind funds that a family member can benefit from in the event of an untimely death. As you age or no longer have dependants, this need lessens, but life insurance can still be beneficial.
Today is a great example for when you have loved ones, family, etc. why you must have protection and ensure that days like today are protected.
Ask yourself one question “how would Christmas be if the family “earner” was not about this morning? Protect that feeling of Christmas morning and ensure that life’s experiences are insured.
Have a fantastic day!
Blog posted by Mike Coady.