Insurance

3 people who can benefit from your life insurance policy besides your children

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Also think about those important people in your life.


Key points

  • If you have children, it is 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 may be protected by a life insurance policy.

Many people don’t think 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). It is therefore important to put protection in place so that they are covered in the event of premature death.

But it’s not just children who can benefit from your life insurance policy. In fact, even if you don’t have children, it might be beneficial to set up coverage 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. And you may think that you don’t need life insurance if you only have to worry about your spouse, since he is able to earn money and hold down a job.

But if you and your spouse have expenses that you paid for jointly, your spouse might not be able to pay for them without your income. It pays to consider life insurance to protect your spouse.

Imagine you and your spouse buying a house together with a $300,000 mortgage. With your two incomes, you could be in a good position to meet your monthly payments. But if you were to die, would your spouse be able to continue to repay this mortgage? If not, that easily justifies life insurance.

2. A relative

Some people take care of their parents as they get older. If this is the situation you find yourself in, your relative may end up benefiting from a life insurance policy you have put in place.

Imagine that without your help, your relative would need home help for many hours at a cost of $300 per week. This is something your parents may not be able to afford. But if you set up coverage, your life insurance payout could cover the cost of care your relative needs while you’re away.

3. A brother

If you have a sibling who is financially dependent on you, that person could benefit from a life insurance policy you have purchased. Imagine you have a brother or sister in their early twenties who is still in school and you help support them by paying their rent until they find gainful employment. If you were to die, this brother could be left behind. But if you get coverage and name your sibling as the life insurance beneficiary, you can help them avoid this fate.

It’s natural to start thinking about life insurance when kids come into play. But it’s not just children who can benefit from life insurance. Consider these other important people in your life when making this decision so that you don’t leave the people you care about in a position where they struggle financially without your financial support.

Life insurance protection for you and your family

While many varieties of insurance coverage are designed to help protect a person’s family and assets, life insurance is an essential type of protection. The right life insurance can help protect the people who depend on you most if you die. Choosing the right life insurance policy is essential to ensure adequate protection for your loved ones. We’ve sorted through the different options to bring you our picks for the best life insurance policies available today.