The main purpose of life insurance is to protect someone whose finances depend on you being alive. For example, if only one of you is working, you need a policy to protect the spouse who is not earning money against the loss of income. The same applies in the case when you have a spouse that earns the majority of the household income.
Another factor to consider is large financial obligations, such as a mortgage. In the eventually of death the proceeds of the life insurance can be used to reduce or eliminate the financial obligation and leave the surviving spouse in a better position.
A life insurance coverage is definitely one of the best investments you can make for your family. You may resent having to pay a monthly premium but at least you can be sure that your family's financial security won't be compromised in the event of your death.
ReplyDeleteThank you Laura for your visit and comment. I agree that insurance planning is an important aspect of the overall family financial planning.
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