Like all insurance, life insurance was designed to solve a financial problem. Life insurance is important because when you die, your income disappears. If you have a spouse, kids or anyone dependent on you financially, they’re going to be left without support. Even if no one depends on your income, there will still be costs associated with your death. That can mean your spouse, child or relatives will have to pay for burial and other end-of-life expenses. As you think about the amount of life insurance coverage you need, consider your beneficiaries and what they’ll need. If no one depends on your income and your funeral expenses won’t damage anyone’s finances, life insurance may be a thing you can skip. But if your death will be a financial burden on your loved ones immediately or in the long term, you may need a life insurance policy.
Who should think about a life insurance coverage?
Conceived with the intent of supporting families to cover burial costs and the care of widows and orphans, life insurance is now a flexible and powerful financial product, capable of supporting surviving family members or other beneficiaries after the death of an insured. Here below, some categories of people who may think about a life insurance.
Parents with minor children
When a parent dies, the loss of income or caring skills can create problems that are difficult to overcome; a life insurance policy can support minors for the period of greatest need, until they can self-maintain.
Parents with adult children with special needs
In the case of children undergoing treatment for life, and therefore not self-sufficient, life insurance guarantees them the possibility of satisfying their needs, also by entrusting financial resources to a trust trust, which will manage them until at the age of majority of the child.
Adults who jointly own a property
Married or cohabiting, if the death of one means that the partner will have difficulty paying the mortgage, and the costs associated with the house, life insurance can be an optimal solution.
Older parents who leave money for adult children to take care of them
If an elderly parent needs special care and attention, an adult child may have to work less, so with the financial support provided by life insurance it is possible to reimburse the expenses of the adult child at the time of the parent’s death.