Should You Drop Life Insurance if You are Struggling Financially?

piggy bank with money

Why you need to keep your life insurance policy.

If you are like most people, then you’ve secured life insurance to protect your loved ones in the event of your unexpected death.  However, it can be tough to keep putting money towards something that you hope never happens.  When money gets tight, you may be tempted to simply cancel your coverage and start pocketing the extra money.  However, it’s best to keep your policy for as long as possible.  Here’s why.

  • It Can Save Your Family’s Home

If you were already struggling financially, then your death will only exacerbate the situation.  Fortunately, if you have the right life insurance in place, your death benefit will provide a financial lifeline for your loved ones.  For instance, the money from your life insurance can be used to meet your home mortgage payments, ensuring that your loved ones can continue to live in their home.

  • It Will Protect Any Remaining Savings and Assets

If your family were to suddenly lose your income, then they might have to use their savings, retirement funds, and other assets to pay for everyday costs.  Fortunately, having life insurance would ensure that your loved ones do not compromise their personal assets.  Instead, the money from your death benefit can be used to pay off debts, meet recurring financial obligations, and take care of day-to-day costs.

  • It Will Prevent an Unplanned Return to Work

If your spouse is staying at home to raise your children, then your income was necessary for survival.  In the event of your death, the loss of your income might force your spouse to return to the workforce.  Because this return was unplanned, they might have to settle for a less-than-ideal working situation.  When you have life insurance in place, your family can survive off of your death benefit, and your spouse can take more time to find a job.  This will improve their chances of finding a good, stable position.

These are some of the reasons why you should not cancel your life insurance policy, even when you are experiencing financial hardships.  Do you have additional questions regarding your life insurance coverage?  If so, then contact the experts at Udell Family Insurance.  We are ready to assist you with all your coverage needs today.

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