Most people think of life insurance with the same objective. It is to help keep your family financially secure if you’re no longer around to take care for them. It can be also difficult to put money toward something that you hope never happens, especially if you do not have spare money. In such situation it may be tempting to stop paying for a life insurance policy, but it’s smart to keep your policy if you can. Here are a few reasons why.
Unplanned Return to the Work
If a surviving spouse is staying home to raise young children, a lack of money will force an unexpected or unwanted return to the workplace. That means childcare costs and other expenses.
Prevent the Loss of Your Family’s Home
If your family is unable to cover the cost of your home without your income, they may have to make the difficult choice of selling it. Your life insurance policy can help your surviving family members cover home mortgage.
Prevent Children from Taking on Student Loan Debt
A life insurance policy can help your children cover the costs of their higher education if you were no longer around to pay for school.
Dealing with financial struggles is not easy — but dropping your life insurance policy to try to save money is not the best long term plan. You could see if you can adjust your family’s spending habits to save money in other areas of your household budget. And keep this important protection in place.