Life insurance is a great way to help your survivors after you die. When you are gone, you won’t be able to provide for them physically. However, you can leave behind a legacy that will benefit them for quite some time.
In reality, there are no limits to ways your survivors can use your life insurance benefits. However, most policyholders want this money to settle large expenses. Life insurance might prove invaluable to many costs arising after someone’s death.
Popular Uses for Life Insurance
It’s unfortunate, but when you die, you’re still going to cost money. Living is not free, nor is dying. Effective life insurance can help your survivors better manage your final expenses. They might use a claims payout to:
- Pay funeral bills. The average funeral these days can cost well into the five-figure range. With life insurance, families won’t have to run up a significant debt to give you a fond farewell. Remember, processing a claim might take a few weeks, or even longer if survivors face issues with the insurer. You might not have the money immediately for the funeral.
- Cover medical costs. End-of-life care, whether sudden or expected, is expensive. Even if you have health insurance, you might have residual costs. Insurance might help settle hospital, home care and other bills that remain after a death.
- Supplement Family Income. Should you die with dependents, like a spouse, children or grandchildren, you want to take care of them. A life insurance claim can help the family replace some of the income you can no longer provide. It might help them better settle their own expenses.
- Support Your Children. Should you leave behind child dependents, they might need financial care which they cannot provide themselves. Your life insurance can help children have the money they need to live a comfortable life.
- Settle debts. Even after you die, your debt remains. Credit cards, mortgages, car notes, excess bills—you don’t want those to take a bite out of your family. They might be able to use your claim to settle these debts. One thing about life insurance is that, usually, debt collectors cannot claim the money until after your family receives it. Therefore, you can ensure your family gets the full claim, but that they can use it to pay debt.
Your death will strike a blow to your survivors, and they might need financial help in to recover. Therefore, let life insurance be a cushion to help them avoid any unfair penalties. Talk to one of our agents to determine which Florence SC life insurance coverage is right for you.