Life Insurance: Providing Security for Short-term Expenses
by Jennie Dalinis-Maxwell
Life insurance is an important part of long-term financial planning. When considering life insurance, you have probably thought of your family's ongoing financial needs.
However, sudden and unexpected expenses can result from death. Life insurance can be an important part of covering the short-term expenses that arise immediately following the death of a loved one.
Here are some examples of costs that are incurred immediately after a loved one passes away:
Funeral or Burial Expenses
According to the National Funeral Directors Association, the average cost of a US funeral is between $5000 and $6000. Depending on how elaborate the arrangements are, funeral costs can be upwards of $10,000.
Legal Fees for Estate Administration
The complexity, size, and number of decedents associated with an estate can increase legal fees. Estate Administration fees may include:
- Probate costs
- Court fees
- Insurance for the estate
- Costs associated with defending a contested will
Taxes on the Estate
Depending on the size of the estate, taxes may be as much as 55%.
Debts
Most of us have loan balances on automobiles, home loans, credit cards, and medical expenses. Not having the funds to meet these obligations, could put your family into a precarious financial situation.
Long-term Considerations
Once family members have attended to the short-terms costs associated with death, there are other long-term expenses. Today, many households have two incomes, so the loss of one income can have an enormous impact.
Here are several ongoing expenses that you should think about when considering the amount of life insurance your family may need:
- Income replacement
- Childcare needs
- Higher education costs
- Retirement planning
Lifestyle is another area for consideration. It may be difficult for your surviving spouse or loved one to raise children and work at the same time. It also might be your wish that the surviving spouse not work at all.
Your first instinct may be to obtain the cheapest life insurance; however, you should take a moment to compare quotes and the features of each policy. By entering your information in the form above, you can begin comparing life insurance rates immediately.
Everyone hopes for a healthy and happy future, but you should also plan ahead for those you may leave behind. To compare quotes, fill out the inquiry form above http://www.cheapinsurance.net/life.html.
Sources
http://www.funeralinformationsociety.org/Can%20You%20Dig%20It%20_%20Metro%20Times.pdf
http://www.nfda.org/component/zine/article/1534-.html
About the Author
Jennie Dalinis-Maxwell has worked in the insurance industry for 20 years. Jennie has worked as an Agent/Broker and also for Health and Life Insurance Companies. Jennie has been active in professional organizations to include Clark County Association of Health Underwriters and Northern Nevada Association of Health Underwriters. Jennie participates in many networking organizations on both a national and local level.
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