Updated: Oct 14, 2020
Purchasing life insurance is a selfless act. You don’t get to drive it home, or wear it out on a Friday night, ultimately you are not reaping the benefits of this policy that you are paying into every month, but doing it is more for the people you love. You buy life insurance to protect the people who rely on you financially.
A lot of people have never considered what would happen to them if they were to die with or even without life insurance. Death isn’t something that is commonly discussed but it is something that you should know about. It is very important to take some time to think about what would happen to your family, or your business after you die. Think about the loss of your income in your household, the debts that you have, how much a funeral would cost, etc. It adds up, quickly. The right type of life insurance can tackle all of these problems.
Dying without life insurance can leave the ones you love, and the ones who rely on you in a financial pickle. You don’t want your death to be a burden on your family or your business, you want them to have a reasonable amount of time to grieve your loss without having to worry about how they are going to pay for the mortgage, when they’re going to go back to work, or how they are going to pay for a proper send off.
This is particularly important for those who have just started a family and have young children. Starting a family really allows you to open up and care about the well being and protection of others.
Simply, life insurance helps ease the burden on your loved ones. The most important reason to buy life insurance is to cover your funeral and burial costs. You might think that these costs are relatively low, but you’d be surprised to know that an average amount of money to spend on a funeral in North America is anywhere from $10,000.00 to $20,000.00.
Think about it this way, do you really want your family to pay out multiple thousands of dollars for your funeral when they could be focusing on other things that could be more pressing with you having passed? Paying for your mortgage, paying off any debts that you might have incurred over time, paying for dance lessons and soccer for the kids, saving up for university, etc…
Other end of life expenses include:
Travel to the funeral for relatives out of town
Loss of wages
Counselling and emotional support for the family
Paying off any taxes or debt
As you can see, everything associated with your death will be harder without life insurance.
The importance of planning ahead has so many benefits. The main goal of life insurance is to cover off your final expenses. Additional benefits depend on your policy and the specifics of whatever you’re looking for. It’s ok to start simple, as long as you are comfortable and comprehend your policy, your household will be well taken care of.