Most people do not understand the value of life insurance. Some people may think of life insurance as just another expense. The question you need to consider is would someone in your life suffer an economic hardship if you were to die or (with new living benefits) get sick or hurt and unable to work and provide income? If your answer is yes, then life insurance is important for you to have.
Why Life Insurance?
If you’re married and have young children at home who depend on your income, you have a clear need for life insurance. The loss of your income could cause an immediate financial hardship. Not only would this make it harder for your family to make ends meet, but for them to realize future goals such as a college education. Even if one spouse is a stay at home parent and doesn’t bring in a formal paycheck, his or her death means that the surviving spouse will have additional expenses such as child care, cooking, and housekeeping – all necessary services for running a household.
Why is life insurance important if you don’t have children or a spouse? Just because you don’t have children or are married, doesn’t necessarily mean that you don’t need life insurance. If your spouse or significant other depends on your income to keep the bills paid and to run the household together as a joint venture, then having the financial safety net of a life insurance policy is vital. Get a term life quote to see how affordable life insurance can be. Whether you’re married or living the single life, who is going to pay the costs associated with your final expenses? Things such as funeral costs and jointly held debt (such as a cosigner on a loan) are just a few of the costs that you’ll need to consider in the event you were to unexpectedly die. Unless you already have sufficient financial resources to cover these expenses, your survivors will most likely need life insurance to help pay for it all.
Having Enough Life Insurance is Just as Important
The loss of a loved one is an emotional and traumatic experience for any family. But not having enough money to meet immediate and ongoing living expenses, can make a very difficult situation even worse. Not only are the people you love grieving your loss, but they’ll now have added financial stresses to cope with. Depending on their current financial resources and ability to get back on their feet both emotionally and financially, your loved ones could be forced to move to a less expensive home or community, forego education and career plans, and cut back on their quality of life. They may be even forced to take out loans to pay for your funeral and burial costs, as well as any outstanding medical or tax bills.
If you’re wondering why life insurance is important, stop to consider the potentially devastating consequences of not having coverage to financially protect the people that you love.
New Life Insurance Includes Living Benefits
Living benefits are exactly what the name implies: benefits paid from the term life policy while you are living. These are more commonly known as accelerated death benefits. With these benefits, the life insurance company pays or advances a portion of the policy’s death benefit to you to pay for care or treatment. The company will then pay the balance of the death benefit to your beneficiary(s) if you were to die.
Chronic Illness Accelerated Death Benefits
According to the Centers for Disease Control and Prevention, chronic diseases such as heart disease, stroke, and cancer are among the costliest of all health problems in the U.S. If you were to become chronically ill during the term of the policy, the company would advance up to 90% of the policy’s coverage amount up to policy maximums to help you pay for treatment or to replace lost income.
To qualify for this benefit, a licensed health care practitioner has to verify you are unable to perform two out of the six activities of daily living or ADL’s (bathing, continence, dressing, eating, toileting and transferring).
Critical Illness Accelerated Death Benefits
If you were to suffer a critical health condition such as cancer, heart attack, stroke or paralysis, you could be eligible to receive accelerated death benefits from your policy. Once again, the company will advance up to 90% of the policy’s face amount up to policy maximums if a licensed physician determines you are critically ill.
Terminal Illness Accelerated Death Benefits
The terminal illness benefit is for more serious conditions where a licensed physician has diagnosed you to have less than 12 months to live. This policy will advance up to 100% of the policy’s face amount, up to policy maximums.