At times, it can be difficult for consumers to visualize exactly what expenses a life insurance policy would cover in the absence of their income. An expert offered consumers a look at what their life insurance policy would take care of.
Financial expert Randy Stein wrote for Iowa's Vinton Today that life insurance serves a role for policyholders at any age. Long-term debt obligations, such as a mortgage, credit card, or auto loan, will need to be paid even after the home's breadwinner has passed away, he said, and a term life insurance policy can step in where their income once stood.
Additionally, those who own businesses ought to purchase a life insurance policy to assist their spouse or business partner with certain concerns after they pass away. These can include the transferring of assets or simply the maintenance of financial solvency in the owner's absence.
Naturally, life insurance also serves as a vital income replacement to help families deal with immediate needs, such as food and bills.
"Keep in mind that younger, healthier individuals can generally secure coverage at more affordable rates, plus buying permanent coverage can guarantee protection should you become uninsurable in the future," wrote Stein.
Rates on term life insurance continue to be especially affordable, and experts suggest consumers consider a policy by shopping around for the most affordable rates.