Having life insurance gives your family a peace of mind that in the midst of your untimely or unexpected demise, your final expenses won’t be a burden. Raise your hand if you have seen a GoFundMe page set up to handle the final expenses for someone. GoFundMe is not a good option for your final expenses. Not a knock on families that have to do that for a young child; who expects to bury their child at an early age?
But for a working adult, GoFundMe is not a very good look. There are two questions that everyone should ask themselves now.
1. Do I have a life insurance policy?
2. Is the policy sufficient enough to sustain my surviving family?
If you don’t have any life insurance, outside of an employer sponsored plan, you need to get insurance right away. The longer you wait to become insured, the more likely it is that rates will increase due to your age, the potential for health risk and a number of other things. Because of this, you need to get a life insurance policy in place for yourself and your loved ones right away.
Here are a few benefits of having a life insurance policy:
- Adequate life insurance can provide a financial safety net for your family. I can’t tell you how many times I have seen someone pass away and their spouse or surviving family members then have to figure out how they are going to pay for items like a home
- Life insurance will pay out a lump sum benefit, which in most cases is tax- free to cover the financial gaps left behind.
- Some policies carry an advance benefit, which can help cover immediate expenses following death. Most people don’t realize that when a loved one passes away, there are some expenses that have to be paid up-front just after the death.
- Legacy. You can name your favorite charity as a part-beneficiary of your life insurance proceeds upon your demise, in addition to your loved ones. The gift that you share can make the difference in a number of lives, thus keeping alive your legacy.
If you already have a life insurance policy, I suggest that you review it to make sure it is enough to sustain whatever expenses you may be leaving behind. Some expenses, depending on the state you reside in, will die with you but some won’t. You want to ensure that the expenses that don’t pass away with you can be covered. If not, there can be undue pressure applied to the remaining loved ones. This is where you enlist the assistance of a financial professional.
Go get some life insurance, and if you have some already, make sure it is adequate!