Life insurance is something we all need, but few of us want to spend any time thinking about our own demise. It’s really not about us, but the people who depend on each of us for their survival. Life insurance is so important that the Life and Health Insurance Foundation for Education has designated September as Life Insurance Awareness Month. The foundation is encouraging people to examine their life insurance policies to determine if they are adequately protected.
Life insurance is a practical way to protect your family’s financial hopes and dreams. The death of a family member can be devastating to survivors both emotionally and financially. Life insurance can provide cash to help with your family’s immediate and long-term needs. Immediate needs include funeral expenses, unpaid medical bills and taxes. Long-term needs include care for a disabled child or elderly parent expenses and, in general, the chance for members of your family to continue to live the life to which they are accustomed.
When you buy life insurance, you buy a promise of protection against financial loss caused by death. The promise is only as good as the company that stands behind it. In today’s marketplace, life insurance buyers should be concerned about both the financial strength of the insurer as well as the level of customer service the company provides.
Life insurance can be the foundation of a sound financial plan, especially given the continuing need after the death of a breadwinner. Think of it as a safety net should a wage earner die unexpectedly. In addition to that, permanent life insurance may accumulate a cash value that can be accessed while you are still living. While any loans from a policy will accrue interest and diminish the cash value and any death benefit, the proceeds could be used for any number of reasons.
Life insurance can be one of the most important purchases you make. Take some time during Life Insurance Awareness Month to examine your life insurance needs.
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