WHY MONEY AFTER DEATH? LIFE INSURANCE.
Probably every financial consultant in the conversation about life insurance heard the objection “I do not need money after death” …
Yes, the person who died no longer needs money. But, they are needed alive.
They are needed for the further maintenance of the family, especially if the breadwinner has died …
They are needed to put their children on their feet.
Even to bury him, they are also needed.
What is a spouse to be left face to face with financial problems?
Any person should be aware that, having passed away, he will deprive his family of not only love, communication, mental and physical warmth, support, but also a familiar source of income.
Death is always a tragedy …
And if it is the death of a man who was the only one who brought money to his family?
But often people don’t want to think about it … they just say, “God forbid!” …
And who has an agreement with him?
What would happen to your family’s standard of living if you, as the main source of income, suddenly died?
Wouldn’t family members have to pay a mortgage or car loan?
Do your relatives know which banks you have accounts in and how much money they have?
Do they know about all your debts?
Do you have deferred cash savings?
Nobody likes to think about their own death … But, reluctance to plan our actions in case of unforeseen events does not save us from their onset …
When leaving home, sort out the financial mess that you can leave behind if you never come back again …
Protecting your family from monetary damage after you are long past remains your duty. The best manner to make sure that this takes place is by means of getting a few funeral insurance. With almost every sort of insurance, you communicate of opportunity. However, with this specific one, you talk of what happens subsequent after dying takes place, considering that it is sure that it’ll occur.
There are various categories in this sort of insurance. Listed below are 3 of those categories.
1. Whole life insurance
This category is sub-divided into elements – the insurance element and the investments component. Therefore, every time you make bills every month, a sure amount will go to the insurance component to hold it lively and the other quantity goes to the investments. Upon your loss of life, the invested money and benefit from the death insurance is going to the beneficiaries. The beneficiary to cover funeral prices and different expenses as nicely can use this cash in any way they locate suit. However, this type of insurance does not demand that the beneficiary makes use of the cash in particular for funeral expenses.
2. Term life insurance
This form of insurance does not deal with investments. It just offers with insurance on either monthly, quarter a 12 months, half a yr or yearly foundation. In the case that you die before the time allocated, then the benefits visit the beneficiaries. However, in case the death takes place after the term indicated then not anything goes to the beneficiaries and the blessings visit the drains. This point makes this form of insurance a massive drawback. What makes this coverage higher than whole life is the fact that the premiums in this example are lower.
3. Pre-need insurance
Pre-want insurance is not something like time period lifestyles or entire existence insurance. It is structured in a manner that it far covers mainly funeral costs. Whole existence and term life choose which you name a family member as your beneficiary. Pre-want insurance decides that you call your funeral director as an alternative as your beneficiary.
The member of the family may want to spend the benefits in a way they desire. A funeral director signs an agreement that sees to it that the whole lot is carried out as deliberate earlier than the demise. The most important drawback in this kind of insurance is that it does not cover whatever else apart from funeral expenses. In case you left behind the loan, then it’s miles upon your family to address it.
Ensure an agent does not deceive you that these are the only present styles of funeral price insurance. Getting charges from exclusive agencies about those forms of insurance will make certain which you do not pass wrong.
Moreover, life insurance is a financial product that guarantees payments in the event of death, and in the event of surviving to the end of the contract.