Importance of Life Insurance for 4 Lifestyle Groups

Life insurance is a necessary form of investment for everyone, since it helps to financially safeguard loved ones. It helps your family to meet their expenses and cater to crucial needs, on the off chance of your premature demise or some other unfortunate event that leaves you critically ill and unable to provide for them.

Life insurance can help a great deal in protecting the spouse, dependent children or parents, and even the family business. As such, it becomes an integral investment for the future considering the rate at which change is taking place in the economy, and the rising need to stay prepared for dealing with trying times.

Who Needs Life Insurance the Most?

Having a life insurance policy assures that at least financially, the people who are most important to you do not have to bear the brunt of your unexpected illness, injury or death. Owning life insurance provides peace of mind and is essential that all breadwinners, stay-at-home parents, single mothers and older couples provision for it, since they need it the most.

Let’s look at why the following groups need life insurance the most:

1. Breadwinners – Breadwinners are the only ones who are financially providing for the family, the spouse, the children and perhaps parents, and so are going to require appropriate life insurance cover.If something bad happens and they are no longer in the position to continue being the breadwinner, who will then provision for everyday expenses, children’s education, spouse’s retirement, and other necessary bills that need to be paid month on month? Imagine what will happen to the family if the breadwinner had unpaid debts at the time of their demise too!Hence, it’s crucial for the breadwinner of every family to be insured, and with adequate coverage to replace their income, too. Most employers offer to provide life insurance cover, but more often than not it is not adequate, and breadwinners need to rely on purchasing additional life insurance to meet their family’s real needs.
2. Stay-at-Home Parents – Stay-at-home parents are the ones who choose to either stop working or continue working from home, in order to take care of the children and keep the house functioning optimally, while the working spouse is away.Working parents work limited hours a day while stay-at-home parents work around the clock, looking after everyone in the house from children to aging parents, besides keeping the house clean, cooking and doing the other necessary chores like laundry, grocery shopping, etc., with no leaves and no pay. Who will get all that work done after they are gone?The work done by a stay-at-home parent comes at a heavy price when an outsider is doing it, especially when you hire nannies for young children or caregivers for old parents. Hence, not only do the breadwinners of the house need life insurance coverage but also the stay-at-home parents, since a policy can help pay for services your family needs.
3. Single Mothers – Single mothers face the maximum challenges, for they not only need to take charge and run a household, raise the children, look after the aging parents but also be the breadwinners for the entire family. Needless to say, they face really tough financial challenges in order to meet their everyday needs.Single mothers require life insurance coverage more than anyone else, to help provision for their dependents’ education and general lifestyle expenses, and perhaps even health care for aging parents if something bad were to happen to them. Life insurance companies offer the advantage of affordable life insurance to hardworking single mothers who need coverage.Choosing a beneficiary can be a concern for single mothers when their children are very young, for who can be trusted to take care of them financially and make sound decisions regarding the finances entrusted to them? This is a decision they must come to with careful consideration.
4. Older Couples – Planning how to pay meet retirement expenses becomes one of the biggest worries for older couples, but that isn’t all. Often, they need to provision for their children and perhaps be in a position to leave behind a legacy too.Having life insurance can help older people meet their retirement needs, so that they can continue living their lifestyle and enjoy financial independence as well as dignity even post-retirement, as well as contribute to the education of the grandchildren, support a favorite charity or plan estate distribution to help their children out financially in case of their demise.If your spouse outlives you for a decade or more, how would they manage to make ends meet? Even if older couples don’t need to provision for their children anymore, they should invest in a life insurance policy so that the surviving spouse can live on comfortably without having to worry about expenses.