What’s the one thing that’s guaranteed in our lives, yet we spend every day avoiding the slightest thought of it? Death. We live knowing one day we will die, but we prefer to leave that thought in the back of our minds. But think about it for a moment. If we die, how will our financial situation impact our loved ones?
If you’re a millennial, you might be ill-informed on life insurance. What exactly does life insurance cover?
Should you die, life insurance covers the expenses your income was responsible for. This includes:
- Bills and other expenses. If you’re the primary caretaker of your home, it’s likely you’re paying for the bills such as your rent, utilities, car payments, insurance, groceries, the list goes on and on. You know how it goes.
- Loans and other debts. Mortgage payments are typically set up on a 30-year Your credit card debt may be high. Possibly, you still have thousands to pay off in student loans.
- Child care. If you have children, they require a whole new avenue of expenses. This ranges from daycare to school fees, extracurricular activities, etc.
- College tuition. Some life insurance policies are good for help with college tuition when your kids get to that point.
- Funeral expenses. Funerals can be extremely pricey.
Death may seem so far away. It’s a basic truth that death can come at any time, though. It’s crucial that your loved ones be financially secure if something happens to you unexpectedly. If your unexpected death happens, your family will be distraught with grief. If you still have credit card debt, student loans, and your family relies on your income, this could be a massive burden for your family to take on all at once.
By knowing specifically what life insurance covers, it’s easy to see why you need it. Most importantly, millennials need life insurance because the younger you are, the less you’ll pay for your policy. This is because at a younger age, it’s likely you’re a lot healthier than if you wait another decade or so to purchase your policy.