Financial Repercussions of Not Having Life Insurance

Financial Repercussions of Not Having Life Insurance

I know most people don’t like to think about death however it is a part of life that none of us can avoid.

With that said there are many financial repercussions of not getting life insurance. One of the biggest issues is that in the event of pre-mature passing your family will be left with a potentially heavy financial burden – everything from funeral & burial expenses to mortgage payments and the upbringing of children.

o Average cost for a funeral & burial: $6500 to $10,000 according to National Funeral Directors Association
o Average cost to raise one child to the age of 18: approx. $250,000 according to the US Dept. of Agriculture

In today’s economy the loss of a person’s income can be especially devastating. Having a life insurance policy in place in case of an untimely death can mean the difference between surviving members of your family living comfortably vs. potentially losing everything.

Each family’s situation is different however there are some important factors to consider when looking at getting a life insurance policy. Below are some of the things to think about:

o Dependents – how many and how many more years do they need to be taken care of?

o Mortgage – how much is left on your mortgage if you were to pass away tomorrow?

o Employment – does one parent work and the other not then there is going to be a huge financial burden left to the parent that doesn’t work in the event the breadwinner passes away; if it is a 2 income household there will now be a loss of that second income to consider

o Debts – any other debts that need to be taken care of besides your mortgage such as credit cards, medical expenses and car payments

Term life insurance is a very affordable type of life insurance that can be worked to fit your family’s financial needs. Protect your family now by getting and comparing term life quotes online. It’s fast, easy and convenient and nothing compares to the peace of mind you’ll have once obtaining a policy.

If you don’t already have a policy what are you waiting for, now is the time to get one. If you do have one you might want to look it over and see if it matches with your current needs.

By Alyssa Faber

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