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The Beginner’s Guide to Buying Insurance for Your Family

Term and permanent life insurance policies make the lives of your loved ones a little easier if you die unexpectedly. But you can extend that coverage to cover the most special people in your life — to protect your own interests. A life insurance policy on a relative or romantic partner gives everyone in the relationship peace of mind. 

According to Statista, 46% of Americans didn’t have a life insurance policy in 2020. Around half the nation’s population is at risk of leaving their loved ones in financial difficulty when they pass away. 

To keep costs down and protect everyone in your family circle or business, you can purchase life insurance policies for the people closest to you. But you must first obtain the person’s consent via a digital signature. This consent gives insurers permission to access the relevant health records required to create a personalized plan. 

To take out life insurance for a friend or colleague, you’ll need to demonstrate that you’ll suffer emotionally and physically if the insured person dies. However, insurers assume suffering when spouses, siblings, and parents die. If you’re not a close relative of the insured, you’ll need to provide proof of your relationship.

Why Might You Want to Insure the Life of Someone Else?

Life insurance for important people in your life provides a financial safety net in the event of sudden death. Whether you’re insuring the life of your business partner or spouse, coverage means you won’t have to worry about paying the bills if the worst happens. 

Life Insurance for a Partner or Spouse

When you create a life with your partner, you usually assume many of the same financial responsibilities. Most couples pool their resources to pay the bills and invest for the future. So when an income is suddenly lost because of an unexpected death, the financial hole left behind can be catastrophic for the remaining partner. 

Insuring the life of your romantic partner can help you to cover a range of expenses, including:

  • Mortgage payments or settling an outstanding mortgage
  • Debt repayments
  • Future income
  • Funeral expenses and death duties
  • Living expenses
  • Childcare expenses

Life Insurance for Your Children

The main reason for purchasing a life insurance policy on a child would be to pay for funeral expenses in the event of unexpected death. But there are certain advantages involved. Buying the policy when your child is young would secure an affordable premium for life, for example. And your child could use the policy for savings or investments in the future, as it would have a cash value later in life.

For older children, life insurance would cover payments on student loans and co-signed debt in the event of sudden death. 

Life Insurance for Parents

If you’re caring for elderly parents, you might have been forced to quit or curtail a lucrative career. You and your surviving parents may also be left with debts to pay in the event of a death. 

Buying a life insurance policy for your parents gives you the financial protection you need for a range of scenarios. 

Debt Repayments

Parents who leave behind debt may be leaving the burden of repayment to their beneficiaries. You can avoid having to use your inheritance to pay off your parents’ debt by purchasing a life insurance policy.

Funeral Expenses

Funerals are expensive, and organizing them is often left to children. The right life insurance policy can give you the money you need to cover these expenses without having to use your own money or dip into your inheritance. 

Caring for the Surviving Parent

When the first parent dies, children often need to take care of the surviving parent. Whether that care is given directly or by a retirement home, there are significant expenses to cover. A suitable life insurance policy covering your parents should ensure you have the money needed to take care of your surviving parent in the event of a death. 

Medical Bills

Older parents often accrue significant health care costs as they get older. And some of these costs may not be covered by standard medical insurance. If your parents leave behind significant medical bills after they die, a life insurance policy should give you enough cash to repay the debt.

Life Insurance for Siblings

There are several scenarios in which you might need to insure the life of a brother or sister. For example, imagine your brother is the main carer for your parents. If he dies, you might have to cover the costs of providing care through a third party. A life insurance policy for your brother should give you enough to cover these costs. 

You can also insure the life of other close relatives, such as cousins, aunts, and uncles. If their sudden death would leave you struggling either financially or emotionally, you should be able to find suitable coverage.

Life Insurance for Your Family Doesn’t Have to Cost the Earth

Buying life insurance to cover your loved ones gives you the peace of mind required to live happily. The financial safety net coverage provides can give everyone in your family the freedom to live life to the fullest. And with the help of Begus Insurance Group, the perfect life insurance policy won’t cost you the Earth. Contact us today to discuss your requirements.