Family Life Insurance for Financial Protection
After the death of a loved one, the spouse and children of the deceased faces a litany of debilitating costs. These costs pile on top of the loss of income had the deceased brought home steady income for the family. Combined with the loss of family income, funeral expenses, and the emotional and psychological toll experienced by all family members - the financial cost could number hundreds of thousands - even millions of dollars - over the period of just a few years.
Here are a few of the average costs of losing a family breadwinner:
- Average funeral cost: $6195
- Average annual income: $35,000
After five years of lost income, your family could be out of an additional $200,000 of income.
Family Life Insurance in Tough Economic Times
Family life coverage is even more important when the economy is tough and one or both of the family income earners are out of a job. In such a case, finances are already stretched thin, and lack of life insurance, followed by an unfortunate death in the family could lead to debt that is inescapable, ultimately leading to potential bankruptcy or foreclosure.
Is it Safe to Get Family Life Insurance in this Economy?
As insurance companies such as AIG continue to fail, many wonder whether or not purchasing a life insurance policy is safe. Luckily state regulations generally require $300,000 dollars in benefits and $100,000 in surrender or cash value, guaranteed. But, of course, most financial planners and life insurance advisers recommend a conservative approach by selecting the plan that is most clear and comes from a trusted insurance company licensed by the state; additionally, you can check the A.M. Best, AAA, or S&P ratings of your prospective life insurance company - A++ is the best rating and as the letters go higher, the safety of the life insurance company as a financial institution is less trusted, and it should be a cause of concern for you and your family.