Investing in life insurance may raise more questions than answers.
That's why it's always important to take the proper steps involved to understand your life insurance policy in its entirety. Doing so will ensure you have all of the right knowledge in front of you to make informed decisions for both you and your family.
Knowing the benefits of a life insurance policy can set your family up for a more secure future. That's why we're breaking down the top consequences of dying without life insurance.
1. Lack of Retirement Planning
It's important to think of where life will take us well beyond the present moment. Planning for your retirement should take into consideration the need for life insurance coverage. It may also include various investments and savings through your bank , which may be part of your personal finance goals including vacation funds, home improvements, or education.
Without life insurance, you may find yourself relying on the support of others after you've stopped earning an income. Help remove the burden from your family by making life insurance a priority when it comes to retirement.
2. Leaving Your Family with Debt
It may not be a discussion you want to have, but if tragedy strikes, it's your loved ones that are left to pick up the pieces surrounding the event. While you may not be able to comfort them emotionally, securing a life insurance policy will help your family be prepared for the financial situations that they encounter. Don't let the unknown keep you from protecting the people you love.
3. No Emergency Savings Option
Saving money for a rainy day is often top of mind for families and young professionals alike. It's easy to contribute money to a savings account each month and think of it as your rainy day fund. However, in the event of a serious accident, terminal illness, or untimely death a savings account will be drained fast and furiously. Making an educated decision to have a solid life insurance policy in place will help you avoid a loss in savings and some of the stress that can come along with it.
4. Leaving Your Children with an Unsure Future
Life insurance is not something to take lightly, especially if you have children. After all, their financial future may depend on whether or not you have a secure plan for them. Without life insurance coverage, your children's basic needs and educational support may suffer.
5. Fear of the Unknown
In addition to all of the aforementioned consequences, it should go without saying that not investing in proper insurance can deny you peace of mind. The fear of not knowing if you or your family will be protected if something outside of your control happens can weigh on you. The extra precaution of a well-researched life insurance plan can help ensure that no matter what happens, you and the ones you loved can live on without those burdens.
Find the Life Insurance Plan that's Right for You
If you are not sure what life insurance to choose based on your specific needs, it's best to reach out to an expert at AIG to learn more about what your options are. These experts are well-versed when it comes to the risks discussed here — and those you may not have considered in the first place. If you already have a plan but are not confident with the details surrounding your policy, you can still reach out to an advisor to learn more about your specific plan, so you can continue to make informed decisions for your and your family's future. After all, the consequences of dying without life insurance are not worth the risk.