#This post is in collaboration with Responsival
No one wants to really think about the life they leave behind should they unfortunately pass away sooner than they planned, however, it is important to plan and think ahead should the worst happen, especially if you have a young family.
It is more common these days for both parents to be working parents as costs have increased dramatically over the years, so if you were to lose one of those incomes suddenly, would you be able to cope? There are many things you can put in place such as an emergency fund for example, however, these are only here to see you through a short-term period of difficulty and as is often the case, many of us do not have a big enough emergency fund (this includes us).
In this post, I want to focus on life insurance, however, it is worth remembering that you can also get critical illness coverage, should you be taken poorly.
Why is life insurance important for a family?
- Financial protection: In the event of the death of a family member who is an income earner, life insurance provides financial support to the remaining family members. It can replace lost income and help cover expenses such as mortgage payments, education costs, and everyday expenses. I think sometimes we all underestimate the importance of protecting our family should the worst happen.
- Debt management: Life insurance can be used to pay off outstanding debts, including mortgages, loans, and credit card balances, preventing the burden from falling on the surviving family members. The common myth that debt follows you to your grave is untrue. Unfortunately, that burden falls on those you left behind. In an ideal world, we wouldn’t have any debts but the reality is we do all have some, whether it be our home, a car or a store card. Don’t let that pressure fall on someone else should you pass away.
- Education expenses: Life insurance can ensure that funds are available to cover the cost of education for the surviving children, including college tuition fees or vocational training. Although I have no plans on going anywhere soon, I feel happy knowing that should something happen, the kids have some money there to help them achieve their dreams.
- Final expenses: Funeral and burial costs can be substantial. Life insurance can help alleviate the financial burden of these expenses for the family during an already difficult time.
- Peace of mind: Knowing that there is a financial safety net in place can provide peace of mind for the family, reducing stress and allowing them to focus on grieving and rebuilding their lives.
Overall, life insurance plays a crucial role in providing financial security and stability for a family, helping them navigate through challenging times and ensuring their long-term well-being.
No one ever wants to talk about death or losing a loved one, we never want to feel that pain. But the reality is, it comes to us all at some point and to me, making sure that Phill and the kids are covered should that happen sooner rather than later give me some peace of mind.
Another thing that has been on my mind lately is the fact that neither of us has a will. not in terms of our finances, they would go to each other and then the kids but more that I am worried if something happened to us both, what would happen to the kids. If you are in the same boat as us, this article from Money Saving Expert is a great place to help you get started.