What does life insurance cover?
Do you ever wonder how your loved ones would fare should something ever happen to you? If someone depends on you financially, life insurance is a topic you shouldn’t avoid.
Life insurance: One of those things many people don’t think about… until it’s too late.
We understand – no one wants to think about dying. But do you ever wonder how your loved ones would fare should something ever happen to you? If someone depends on you financially, life insurance is a topic you shouldn’t avoid.
There are many different types of life insurance, but in every plan, the goal is the same: to provide money from your active policy to your beneficiaries after you die. These proceeds can be used to manage financial obligations in the absence of your income. In more direct terms, life insurance can help keep your family from having to make drastic changes to future plans following your death.
Life insurance payments can be used to cover a variety of things like:
- End-of-life expenses, such as uncovered medical bills and the cost of your funeral and burial. According to the National Funeral Directors Association, the median cost of an adult funeral with viewing and burial in 2021 was $7,848.
- Unpaid debts, like a home mortgage or car loan, credit card debt, taxes, and estate settlement costs. The average American has $90,460 in debt, according to a 2021 CNBC report. When someone dies owing a debt, the debt usually does not go away. Generally, the deceased person’s estate is responsible for paying any unpaid debts, according to the Consumer Financial Protection Bureau.
- Day-to-day expenses, like groceries, housing, utilities, transportation, and clothing. Would your family take a financial hit if you weren’t bringing home a regular paycheck? Life insurance can help cover ongoing expenses for your family.
- Future needs, like your spouse’s retirement or your child’s education. According to the most recent report released by the United States Department of Agriculture, it takes a whopping $233,610 to raise a child. The study has not been updated since 2017, but when adjusted for inflation, the number jumps to $267,233 in 2021 dollars, based on data from the Bureau of Labor Statistics. Do you want your spouse to have to pay for that alone?
Yes, we understand that delving into the world of life insurance for the first time can be an overwhelming task. At KFB Insurance, we want to make choosing life insurance for your family's needs as stress-free as possible by giving you the information you need to make educated decisions. KFB Insurance is proud to offer life insurance coverage through Southern Farm Bureau® Life Insurance Company. Click here to get in touch with a local agent who can help you pick a plan.