The Common Courtesy of a Life Insurance Policy
If you’re over the age of 30 with no spouse or dependents, you may think you don’t need life insurance because you don’t have a family to depend on. However, many people fail to consider the family whose house they were raised in. These individuals were likely taught good manners, but seem to forget them where life insurance is involved.
While a life insurance policy can help a breadwinner provide financial stability to those who need them most in the event of their death, it also ensures that your family members and estate are not unduly devastated during an already difficult time, which would be extremely insensitive of you. You can read about Suncorps life insurance product directly on their site & decide for yourself if it can be of benefit to you.
For starters, if today was your last day, who would pay for your funeral? Even a basic ceremony can total well over $10,000, and if you lack the adequate life insurance to cover these expenses, some unwitting family member will be stuck with the unfortunate burden. It would be terribly impolite to die unexpectedly and leave your debts unsettled. It’s enough that you won’t be showing up to the family Christmas party without being the reason it gets canceled due to lack of funding.
A life insurance policy helps you honor prior commitments, and this is one of the core tenets of good manners. Being listed as a joint debtor with a family member or friend on a mortgage or other loan document is a promise to help pay the loan back is effectively a promise, and dying is certainly a poor excuse for breaking a promise to someone you love. A good like insurance policy with the associated party named as the beneficiary could provide enough funds to help you remain a good friend in life and afterward.
Obtaining a life insurance policy while you are in good health shows a willingness to be punctual, and this is always a welcome trait. Insurers offer their best rates to relatively young, healthy individuals, and it may be possible to lock in your premium rate for the life of your policy. Securing a policy before you absolutely need one is much like showing up on time to a party: you will have your choice of dance partners, receive the best available favors and remain in a good position as the festivities wear on. Waiting until your health deteriorates to pursue a life insurance policy is like showing up to a buffet at the end of the day: if anything is left for you, it won’t be very appealing.
While it is true that a person who is over the age of 30 with no dependents does not necessarily need life insurance, many will agree that it is simply the proper thing to do. A life insurance policy is an assurance that others will not be unfairly inconvenienced due to your circumstances. It’s a matter of common courtesy.
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In about a year I need to co-sign a student loan for my daughter. I remember reading a horrible story about a student who died shortly after graduation. Mom and dad were on the hook for the loan repayments. The bank was portrayed as evil for expecting to be paid, but from my vantage point was justified. That is what co-signing means.
Which brings me back to your article. Having my daughter purchase a life insurance policy protects dear old dad, and helps her lock in a low rate. Thanks for the suggestion!
Traditional term life insurance can be the ideal solution if your goal is to cover a set period of time at a set cost. If you pass away the day after the term of the policy the insurance company does not pay your beneficiaries a single penny.
For example, if you purchase a 20-year term when your child is born and you pass away 21 years later (when your mortgage is only 50% paid off and the third year of college tuition comes due); the insurance company pays your beneficiaries nothing. With traditional term life insurance the insurance company returns 0% of the premiums you paid at the end of the term.