It’s never a good thing to lose someone you love. Along with grieving might come new responsibilities that survivors will have to shoulder. They might have to adapt to no longer having the financial security that you used to provide, and this might prove very worrisome.
Life insurance is a critical benefit to have in circumstances like these. Though you hope you won’t have to use it too soon, you still can be certain that you have a benefit available to your family that will ease their financial burden during very challenging times.
Why Life Insurance Stabilizes Your Family’s Finances
Everyone contributes value to their household, regardless of whether they are employed outside the home. Therefore, if a core family member were to die, the remaining family could face financial insecurity. The death benefit that the insurance policy can provide on your death will help them ease their burdens.
Here are some key benefits of having a life insurance policy:
- Unlike your other savings accounts and investments, life insurance does not face probate. Probate can tie up financials for a deceased person’s residual estate for up to a year. By contrast, life insurance makes sure your family has funds immediately.
- Policies often provide funds within weeks. As soon as the county issues a death certificate, your loved ones can claim the funds. They can use the funds for anything they need.
- Your loved ones do not have any rules on how they use the funds. For instance, they can use them to pay their day-to-day expenses. The key here is they do not necessarily have to use them to pay your debts. However, this is what many survivors choose to do with the money.
- The policy still allows you to choose who the funds go to. There are no rules here. If you name a beneficiary for your policy, and they are not underage or otherwise disqualified from receiving the money, they receive the funds on your death. You can, however, take further legal steps, such as creating trusts, to ensure the security of the funds.
- You can select smaller policies to cover your funeral and end-of-life costs. This is a very inexpensive way to relieve your family of this financial burden. Some people even carry several small policies that are intended to be used for different purposes.
You don’t want your family to lose critical savings after your death. After all, what’s better to leave them but a secure financial legacy? Life insurance is the benefit that will help you reach this goal, and with its affordability and accessibility, it’s an excellent savings strategy.