3 People Who Can Benefit From Your Life Insurance Policy Besides Your Kids
- If you have children, it's important to protect them with a life insurance policy.
- It could still pay to get coverage even if you don't have kids.
- Spouses, parents, and siblings are examples of people who can be protected by a life insurance policy.
Consider these important people in your life, too.
A lot of people don't start thinking about life insurance until they have children. And that logic makes sense. Once you have kids, you have people in your life who depend on you financially and can't go out and work (at least not until they're older). And so it's important to put protection in place so they're covered in the event of your untimely passing.
But it's not just children who can benefit from your life insurance policy. In fact, even if you don't have kids, it could pay to put coverage into place to protect other important people in your life. Here are three to consider.
1. Your spouse
You may have a spouse who works and contributes financially to your household just like you do. And you might think you don't need life insurance if it's just your spouse you have to worry about, since they're capable of earning money and holding down a job.
But if you and your spouse have expenses you've taken on jointly, your spouse may not be able to keep up with them in the absence of your income. It pays to consider life insurance to protect your spouse.
Imagine you and your spouse bought a home together that comes with a $300,000 mortgage. With both of your incomes, you might be in a solid position to keep up with your monthly payments. But if you were to pass away, would your spouse be able to keep paying off that home loan? If not, then it easily makes the case for life insurance.
2. A parent
Some people provide care to their parents as they age. If that's the position you're in, then your parent could end up benefiting from a life insurance policy you put into place.
Imagine that without your help, your parent would need a home health aide for many hours at a cost of $300 a week. That's something your parent may not be able to afford. But if you put coverage in place, your life insurance payout could cover the cost of the care your parent needs in your absence.
3. A sibling
If you have a sibling who relies on you financially, then that person might benefit from a life insurance policy you set up. Imagine you have a sibling in their early 20s who's still in school, and you're helping support them by paying their rent until they're gainfully employed. If you were to pass away, that sibling might be left in the lurch. But if you get coverage and designate your sibling as a life insurance beneficiary, you can help them avoid that fate.
It's natural to start thinking about life insurance when kids come into the mix. But it's not just children who can benefit from life insurance. Consider these other important people in your life when making that decision so you're not leaving anyone you care about in a position where they're struggling financially without your monetary support.
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