If you want to have a great financial future, you may have bought real estate, put money into mutual funds, or have a retirement plan like a 401k, a Roth IRA, or a pension. But did you know that life insurance can potentially help you with financial planning? In fact, having a life insurance policy is one of the keys to good financial planning.
Here are some of the ways life insurance can help with financial issues:
Paying off a mortgage
If you have a mortgage with your spouse, life insurance on both of you can be extremely helpful, especially if you need both of your current incomes to pay the mortgage. Think about what would happen if one of you were to pass away. Chances are, you might not be able to pay the mortgage without the other person’s income. That’s where life insurance can help. You can get a medlife insurance policy that could be worth enough to potentially pay the mortgage off, or at least help with the payments. If both of you have children, and life insurance policies on each other, if you were to both pass away, your children could potentially stay in the house, thus giving them some stability. Without a life insurance policy, your family may have to end of selling your house if you were to pass away.
Paying for a burial and funeral
What would happen if you were to suddenly pass away? Did you read about what happened when reality TV star Shain Gandee died, along with his uncle and cousin, due to carbon monoxide poisoning? The 21-year-old star of MTV’s show “Buckwild” did not have a life insurance policy, and his West Virginia family initially said publicly that they would need help from donations for funeral expenses. After a bit of public outcry over the situation, MTV finally agreed to pay for Gandee’s funeral, but not for that of his uncle and cousin, and the family faces $16,000 in funeral and burial expenses for them.
Anyhow, this should be a life lesson to think about. What if you were to pass away? Funerals are more and more expensive these days. Does your family have enough money around to pay for your final expenses? In many cases, they do not, which means that they could go into debt in order to be able to take care of such expenses. Or even worse, you may not get a funeral; just a burial in Potters Field or a cremation with no ceremony. If that how you want your family to say goodbye to you?
Paying to support your children or spouse
Not having your income could hurt your family. It could mean that your children won’t get to go to private schools or college, or that your spouse may have to get a job that means more money, but less time with your children. That is another reason to consider medlife insurance.