Life Insurance Policy Considerations
The person in the family whose job provides the health insurance for the family should take that expense into account when deciding on a policy. In the event of the death, those left behind will have the opportunity to continue to have the same policy through COBRA. In this situation, the company for which the deceased worked will continue to pay their part of the policy for a set amount of time; however, the rest of the premium must continue to be met by the insured-a difficult task without a paycheck. A good life insurance policy will provide enough money to account for the loss of insurance.
It is also important to consider how much it will cost to replace the imperative tasks met by a caretaker/homemaker in the event of death. If a woman who is primarily the caretaker for the family passes away, she leaves children who now need someone to take care of them during the time when the surviving parent is working. The cost of childcare for children can reach more than ten thousand dollars per year for full time care for a family with only two children, and this expenditure should be anticipated in the search for insurance; it has been estimated that a homemaker's daily tasks and responsibilities are equivalent to a $120,000 annual salary based on what it would cost to pay for the services he/she provides the family. Is your policy enough?
Survivor families also often find themselves paying for things such as repair work, oil changes, home improvements, housework, and yard work that the recently deceased would have done. The unanticipated list is endless, and each expense is a blow in the face of grief. When shopping for life insurance, it is imperative to consider such incidentals and not just for the immediate future. It is suggested that a policy provide the beneficiary a monetary amount that will suffice several years of maintained lifestyle while he/she works to recuperate.
It is a difficult task to try to imagine life without a loved one, but an adequate life insurance policy is a must. The death of a loved one will be met with much grief and an uphill battle of healing. Leaving your loved one with a financial struggle to fight is an unnecessary evil that can be combated with a simple life insurance policy and a small monthly premium.
by: Andrew Stratton