There can be no doubt; it is beholden upon you to ensure that your dependents, and your spouse, will be able to maintain their current lifestyle if something unexpected happened to you.
Life Insurance is a policy that pays a lump sum of money to you, or your estate, in the event of certain unforeseen incidents. It is necessary because nobody knows what the future has in store.
If you’re like most people, you’ve used debt to finance a range of lifestyle purchases, including the family home. However, if you die, the loan repayments will still need to be made, even though the salary your family has relied upon is no longer available.
Your loan documents may even contain a clause that requires immediate repayment if you die or become disabled. However, sometimes this is not feasible, and the only option may be to sell the underlying asset to repay the lender. When this asset is your family home, your dependents could be in the inenvitable position of either having to re-finance the loan or sell and downgrade their residence.
You need to consider how your loved ones would cope if you died unexpectedly, developed a medical illness or became totally and permanently disabled. Whilst it’s not an easy subject to think about, it is really important to consider what sort of financial situation you would leave your family in.
Please contact Sanders Financial Planning and speak with one of our Financial Planners, so we can provide you with tailored financial planning advice which is appropriate for your individual needs.