Does Your Policy Cover Your Survivors’ Needs?
One of the biggest failures of the life insurance industry is its inability to educate people about the need for life insurance. Even today, decades after life insurance was introduced, many people believe the need for life insurance corresponds directly with your chances of dying. So, the argument goes, the higher the probability of your death, the more need you have for life insurance. Nothing could be farther from the truth.
What most of us don’t realize is that if we have people who are dependent on us and our income, we just need life insurance. This will ensure that our dependents like spouse, children, parents, siblings,… don’t suffer financial problems in the event of our death. So, it doesn’t matter how young or old you are or what your profession is. The ground rule is that anybody who depends on you in your lifetime should not have to financial problems after your death. Freep.com reports:
Estimate the immediate expenses your family would incur in the event of your demise. Include funeral costs, lawyer fees, mortgage and car payments, daily expenses and outstanding debts.Determine how much missing income your family will need and for how long. Consider your salary and how many years you’ll want to replace it.
Read more: Life policies must cover income, survivors’ needs
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