A life insurance policy is a necessity for every family. The breadwinners in the family must have insurance to assure the security of their spouse and children. Also, a life insurance policy is the only way for a family to pay off their home, pay for final expenses and educate their children in the event of a tragic death. These insurance policies handle the three items below for grieving families.
Item #1: Final Expenses
Funerals are very expensive, and the money that comes in from an insurance claim will help pay for these final expenses. The family should not have to worry about money when they must bury their friend, father, mother or spouse, and these policies help prevent trouble in this area.
Item #2: Pays Off Debts
The family that is grieving the loss of a father or mother should use their insurance claim money to pay off debts. The house and cars can be paid outright with a lump sum claim payment. This alleviates financial strain on the family. The wife and kids can stay in the family home while they plan to move forward with their lives, and the family will have possessions with tangible value.
Item #3: Pays For Education
The family that is grieving the loss of a parent or spouse can use the money for a payout to pay for secondary school or college. These payments make sure the children in the family get their education when they are grieving the loss of a parent.
These policies come in a number of forms. They can range from small amounts of money to very large amounts. Most policies are written for five to seven years of salary for the family breadwinner. These policies also collect interest that can be left in the policy to make it more valuable in the future. The family can live securely knowing that they can survive if something tragic happens.