The importance of life insurance
In recent weeks, we paid our respects to one of our team members whose father had passed away. This made us present to the importance of being proactive to plan for the emotional and financial stress that a death in the family brings.
One of the biggest challenges with a death in the family is that it feels as though your life has stopped, that you can’t possibly go on. However, life doesn’t stop and neither do any of the costs associated with it.
Whether it’s mortgage payments, car payments, daycare, food and clothing – you are still expected to deliver. Fortunately, it’s possible to reduce your stress during this ordeal.
Our colleague did this by making arrangements prior to her father’s death through a life insurance policy that paid out on his passing. This money helped her cover the funeral expenses.
And even as she was paying her final respects, unforeseen challenges and complications arose. She faced additional expenses such as transporting his body, buying an urn for his ashes, arranging for a priest to oversee the service, the funeral house raising their rates and so on.
It seems perverse talking about costs and fees in the context of a loved one’s death, but that’s the reality. Just as it costs money to be alive in this world, it also costs money to leave it.
Funeral expenses, also known as “end of life” expenses include:
- Renting a casket
- Buying a grave plot
- Renting a funeral home
- Childcare for infants
- Funeral procession charges
Such costs add up and you may be facing a major financial challenge on top of the emotional burden. Moreover, these expenses are not trivial: funerals can cost up to $12,000; unforeseen expenses can be thousands extra. Most of us probably don’t have money like this just laying around.
Life insurance comes into the picture when it pays out upon the death of the policyholder. The money goes to the named beneficiary – most often the spouse or children. Beneficiaries can use the money to pay funeral costs, settle debts, cover work leave and many other expenses. It can really help take care of you until you’re back on your feet.
Given all these benefits, why are people skeptical of life insurance? Some people are unaware because no one took the time to explain to them; others are concerned about the additional monthly payments. However, after everything we have shared above, we think you’ll agree that the benefits are worth it.
So be proactive: plan today for tomorrow and beyond.