No Life Insurance Coverage

If you die with no life insurance you can be assured of one thing, it will surely have dreadful and unintended consequences for your heirs; such as a spouse and children. If you are the breadwinner, you could be leaving a mortgage, an unemployed spouse and dependent children.

The first major expense will be the funeral expense and other burial costs. This is not a time when a bereaved, emotional spouse can easily make a wise, affordable decision. Instead she may be caught up by painful emotions, wanting to honor her husband with the most beautiful funeral and thus create an even worse situation by adding a huge debt she cannot afford.

Then the surviving spouse will have to care for the children and at the same time keep up with rental or mortgage payments in order to provide for the family. Especially if the survivor is unemployed or has an inadequate job and now, to add to all these problems, has to start a job search. This situation can be a difficult or impossible one with little or no finances and offers the spouse no choice but to start liquidating assets including the family home in order to survive.

The more you consider the perils of no life insurance; you have to ask how will the survivor be able to provide child care and schooling or college for the children? With the foreknowledge that medical costs are continuing to rise, this will be a burden that would be unsustainable without medical insurance. Last but not least, if you have an estate there will also be attorney fees occurring in the process of settling your estate.

The question should not be, “Should I buy life insurance?”, the question should be, “How much life insurance should I buy”?