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Tuesday, February 17, 2009
It would seem like life insurance is too much of a hassle to deal with. Even for the wealthy, however, life insurance is going to be all but unnecessary when it comes to reducing the burden that is placed on family members after one's death. The real task at hand is to find a good policy that can cover all necessary expenses, but also be affordable enough to be worth the coverage.
When one dies, he or she may leave behind certain debts. These debts to be paid will sometimes pass over to the relatives of the deceased, depending on the debt and laws governing it. Tough situations such as trying to handle the mortgage payments of a recently deceased family member can be quite the burden- and may end up in losing a house without financial assistance.
A middle class family is likely going to need help in paying for a funeral and its associated costs. A funeral will, on average, cost as much as $12,000 or more. This depends on the options and the funeral home providing the service, but this is considered the established norm. As can be see, life insurance is necessary for families that don't have a large stash of money saved back.
When one passes belongings on, it is subject to tax; depending on what it is. A large piece of property a wealthy land owner might hold, for instance, is going to rack up quite a large number in expenses when it comes time to pay the government. Having life insurance will either pay this amount or help lessen the blow that is left on surviving family members. This applies to other belongings and even cash funds as well.
Life insurance premiums, in comparison to the aforementioned topics, are quite cheap. The average insurance premium will amount to around $500 or so each year, depending on many variable factors. Doing the math, we can see that paying out of pocket for life insurance can pay for itself in as much as 20 years or more. Clearly, the question to obtain life insurance or not is fairly easy if the funds are there to be used.
Shopping around is actually a very good idea, but not only for life insurance companies. Funeral companies are also in the business to make money, so they will have different rates and services as well. Make a list of businesses in your area, visit each one, and make an educated decision on which to go with.
Final Thoughts
Life insurance is a very necessary component in life, of which is required to ensure family members will not have to take the burden of funeral costs alone. Talk to some community leaders, family members, and friends to investigate further options in life insurance.
When one dies, he or she may leave behind certain debts. These debts to be paid will sometimes pass over to the relatives of the deceased, depending on the debt and laws governing it. Tough situations such as trying to handle the mortgage payments of a recently deceased family member can be quite the burden- and may end up in losing a house without financial assistance.
A middle class family is likely going to need help in paying for a funeral and its associated costs. A funeral will, on average, cost as much as $12,000 or more. This depends on the options and the funeral home providing the service, but this is considered the established norm. As can be see, life insurance is necessary for families that don't have a large stash of money saved back.
When one passes belongings on, it is subject to tax; depending on what it is. A large piece of property a wealthy land owner might hold, for instance, is going to rack up quite a large number in expenses when it comes time to pay the government. Having life insurance will either pay this amount or help lessen the blow that is left on surviving family members. This applies to other belongings and even cash funds as well.
Life insurance premiums, in comparison to the aforementioned topics, are quite cheap. The average insurance premium will amount to around $500 or so each year, depending on many variable factors. Doing the math, we can see that paying out of pocket for life insurance can pay for itself in as much as 20 years or more. Clearly, the question to obtain life insurance or not is fairly easy if the funds are there to be used.
Shopping around is actually a very good idea, but not only for life insurance companies. Funeral companies are also in the business to make money, so they will have different rates and services as well. Make a list of businesses in your area, visit each one, and make an educated decision on which to go with.
Final Thoughts
Life insurance is a very necessary component in life, of which is required to ensure family members will not have to take the burden of funeral costs alone. Talk to some community leaders, family members, and friends to investigate further options in life insurance.
posted by Credit Counseling at
7:47 AM
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