Although some may have cut their life insurance spending in an effort to save money during the recession, the protection it provides may be essential, even in some less obvious cases, according to the Memphis Daily News.
Not insuring stay-at-home spouses could be a big mistake, even though they do not have an income, the source warns. Their death would still have a drastic impact on family finances and may require the use of expensive professional services to perform their responsibilities.
Another oversight is not insuring both parents. Though rare, the source reinforces the possibility that both parents may pass away at the same time, leaving a caretaker with the financial burden brought on by adding children to their family. By insuring both parents, the financial returns may be enough to assist the child's new guardian, the source says.
Finally, singles also benefit from life insurance, since the policy can be used to cover their debt and funeral expenses, according to the source. Without coverage, any expenses incurred may fall to their estate, making the grieving process even more stressful.
Despite facts in support of life insurance, many forgo the worthwhile investment. Between 2004 and 2009, the number of individual life insurance policies in the U.S. dropped by about 1 million, according to the Insurance Information Institute.