There are many different elements of sound financial planning from saving for retirement to developing an investment strategy. However, one thing you should not overlook is life insurance. While it may be unpleasant to think about, and you may believe you don’t need to worry about it if you’re still young, factoring life insurance into your financial plan is important for several reasons.
- It covers the cost of a funeral- A casket alone costs a few thousand dollars, and your family may not have that kind of money to spend if you pass away unexpectedly. Having life insurance means they can provide you with a proper funeral and grieve without worrying about money.
- It can provide income replacement- Even if you aren’t the sole breadwinner in your family, your spouse may find it difficult to keep the family afloat without your income. Life insurance may be able to help replace that income, at least for a while.
- It can help pay your mortgage- If you are survived by your spouse and they can’t afford to keep making mortgage payments on their own, life insurance can help them stay at your home instead of moving out at an already turbulent time.
- It gives you peace of mind- Another valuable aspect of life insurance is that it can give you reassurance that your beneficiaries will be taken care of after you’re gone.
To learn more about your life insurance options, contact Planning Bucket.