Life Insurance coverage: who should buy it?

Category: Archive
Tag: #finance #Finance Insurance Personal Life #insurance #personal
Share:

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.

Published: 2021-01-27From: Matteo Belfiglio

You may also like

Car valuation in 2023: Tools and rules to get the most out of the sale

In 2023, the valuation of a car relies on modern tools and specific rules to get the most out of the sale. Today, values are established using online valuation systems, such as specialised websites and apps, which take into account various factors such as the model, year of production, mileage and general condition of the… Continue reading Car valuation in 2023: Tools and rules to get the most out of the sale

2023-06-08Elisa

The latest news on pet insurance

In 2023/2024, pet insurance offers significant benefits for the care and protection of dogs and cats. These policies provide coverage for veterinary expenses, medical emergencies and other health needs of our four-legged friends. Coverage under pet insurance policies includes routine veterinary visits, treatments for illnesses and injuries, surgeries and therapies. Some policies may also cover… Continue reading The latest news on pet insurance

2023-06-07Elisa

Online bank accounts in the US: latest news

In 2023/2024, online bank accounts in the United States offer a host of benefits and new features. These accounts allow you to manage your finances conveniently, quickly and efficiently, without having to visit a physical branch. Online bank accounts offer digital banking solutions, allowing users to bank from anywhere, at any time. One can make… Continue reading Online bank accounts in the US: latest news

2023-06-07Elisa

Home Insurance in the US, the latest guide 2023

In 2023/2024, home insurance in the United States offers significant benefits to protect flats and villas. These policies provide cover against physical damage, theft, liability and other unforeseen situations that may occur in one’s home. Coverages provided by home insurance policies include damage caused by fire, flooding, storms, theft and vandalism. Some policies may also… Continue reading Home Insurance in the US, the latest guide 2023

2023-06-07Elisa