Life insurance is important because it offers an income to loved ones or other beneficiaries in the event of the death of the insured, explains Futurity First. Life insurance proceeds help cover the significant cost of a funeral and burial and leave loved ones without significant debts related to the deceased. Such debts are not simply related to funeral expenses but to other responsibilities such as credit card balances, car loans and mortgages, which can be settled with insurance proceeds.
Life insurance can protect loved ones and make sure they remain financially stable years after the death of the insured, claims Futurity First. Insurance provides funds for daily living expenses and bills, but also for larger expenses such as college education or a spouse returning to school to finish a degree. Life insurance can also be an asset while the insured person is alive, if the funds are needed for an emergency.
Individuals are not the only ones who can benefit from a good life insurance program, according to Futurity First. It can protect businesses from liability, loss and instability in the case of the death of an owner or partner. The infusion of cash can help the business maneuver through the difficult period and adjust to the loss of significant personnel.