Why have life insurance? Because you never know what the future holds. Many people are put off by buying life insurance because they think they are young and healthy. Many others don't want to think about death or illness. However, it is only prudent to consider the consequences of an accident that would leave our spouse and children alone. Let's face it - none of us are invincible.
life assurance is not just for seniors or older adults. In fact, it is very affordable for people in their 30s and 40s. Rates are usually calculated based on age, gender, general health and whether you smoke or not. Your occupation may even be taken into account when deciding your premiums. Young people will be the most disrupted by the death of a spouse because they simply aren't financially prepared for it.
It is important to consider the consequences of your untimely death on your loved ones. If you are the sole breadwinner or even contribute a small portion of the household income, your death could mean that your spouse and children have to leave the family home because they cannot afford mortgage payments. Your children will inevitably suffer by such a disruption - they may have to switch schools, caregivers, etc. Coping with the loss of a parent is traumatic enough; your kids should be able to at least remain at home.
Even if you don't contribute to the household income, expect that your spouse will have to take time off of work to cope with your death. Ask yourself how much time you would need to deal with such a significant and life-altering change. You would not want to return to work after only a few days. You would need to consider the cost of day care for your children and grief counseling for yourself. The cost of a funeral alone can run up a massive debt if you aren't prepared for it.
Planning for the future is just common sense. We insure our cars because we don't want to be stuck without a car and we insure our homes because we would be lost without all of its contents. Most of us don't consider the unforeseeable consequences of losing a spouse. Life insurance protects our families from insurmountable debts and financial insecurity upon our deaths.
