Do you really need life insurance? Isn't life insurance just an added expense that could be eliminated from the family budget? Could you do better with other investments?
If you answer yes, ask yourself a few more questions. If your income suddenly disappeared, how much money would your family need to get by? Would your savings and other investments be enough to provide your daily living expenses? — And for how long? It’s a simple fact that you need money to live, and money is exactly what life insurance provides.
Your Family Will Need Cash
Consider that when someone dies, there is usually a need for both cash and income for the family who’s left behind — and they might need to come up with cash quickly. Money will be needed not only for final expenses such as the funeral and burial, but for any debts that need to be paid from the estate. Life insurance can take care of those expenses and much more. Life insurance can be used to:
- Pay Off the Mortgage – allowing the family to stay in the home, or sell when the time is right rather than having to sell quickly (and perhaps at a reduced cost) for other cash needs.
- Establish an Education Fund – ensuring the children can pursue a college degree, or provide better career options for a surviving spouse.
- Set Aside an Emergency Fund – which is extremely important if only one spouse remains.
Your Income Will Need To Be ReplacedA family’s needs won’t stop with cash. There must be a way to make up for the income that has been lost. Food, clothing, utilities, transportation — there is a long list of essential ongoing needs that will have to be paid for somehow.
Is Life Insurance the Only Option?
There are few other viable options that provide the financial security offered by life insurance.
- Savings Accounts – If you’re like most people today, saving money isn’t always easy. How long could your family live on the money you currently have in your checking and savings accounts?
- Social Security – Survivors may receive minimal income from Social Security, but that’s meant to help cover only the bare necessities. In addition there is a “blackout period” when no benefits will be paid. For more information visit SocialSecurity.gov.
- Charity – Do you have friends and relatives that will extend financial support to your family? If so, are they in a position to meet more expensive needs like college funding?
Life Insurance Costs Less Than You ThinkStudies show that people usually overestimate the cost of life insurance, assuming that it’s out-of-reach for their budget. The reality is that life insurance is very affordable today. At Catholic Financial Life for instance a 30-year-old mom or dad can get $250,000 Term Life Insurance for only about $25 per month.*
Get Life Insurance and Get On With Life
There really is no better way to make sure that your family will be ok if the unexpected happens. Death isn’t something anyone wants to talk about; however, no one can predict the future. You can’t ensure that life will be perfect, but you can try to cover your bases. Life insurance is one thing you can control. And that helps take away some of the anxiety of an uncertain future for those you care about. Get life insurance and get on with what really matters.
*Rates vary by age, health, gender, and type of coverage.
Catholic Financial Life is headquartered in Milwaukee, Wis. Not all products are available in all states.