To be clear, life insurance is a type of financial tool put in place to help those people you name as beneficiaries to the policy after your death. Many people forgo choosing life insurance because they believe there’s no risk right now. However, the sooner you buy it, the less it will likely cost you and the more protection your family gains from unexpected events. One of the biggest reasons to purchase this type of security blanket is because it can help to pay down your existing debt at the time of your death. That can be an incredible resource for your family and loved ones.
What Debts Do You Have?
A good way to see the value of this type of insurance and to learn how much you need to purchase is to simply look at the debts you are currently responsible for. If you were to suddenly die, your family would be responsible for paying these debts without the income you bring into the family. Could they continue to live the lifestyle they are living now if you were not there to meet these financial obligations?
- Your mortgage
- Day-to-day expenses
- Credit card debt
- Student loans
- Personal loans
- Taxes
- Vehicle loans
If you have any of these financial obligations, you may wish to purchase enough life insurance to cover the costs of paying off these debts at the time of your death. If you should die with a term life insurance policy, for example, your loved ones would gain near immediate access to the funds from the policy and can use them to pay down these debts. It could mean they would be able to reduce their financial needs and maintain the same quality of living if you are not there to meet their needs and your obligations.
Selecting life insurance that achieves these goals isn’t difficult to do since a wide range of affordable policies exist. But for those who have debt, it is very important for you to consider investing in these policies. Doing so can make it far easier for your loved ones to continue their life if something were to happen to you. And, whole life insurance policies can be used for the same purpose while extending the timeframe they are in place. Both are powerful financial tools.
For more information about Houston life insurance, give Turrentine Insurance Agency a call at (281) 476-0557 today!