Why You Need to Keep Your Life Insurance Policy During Hard Financial Times

If you are like most people, then you’ve secured life insurance to protect your loved ones in the event of your unexpected death. When money gets tight, you may be tempted to simply cancel your coverage and start pocketing the extra cash. 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. 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 lose your income suddenly, then they might have to use their savings, retirement, funds, and other assets to pay for everyday costs.  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 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.  This means there are now unexpected costs to going back to work such as daycare.

• It Can Save Your Children from Taking on Student Loan Debt

If you planned to send your kids to post secondary, then having life insurance coverage will ensure that you make these plans a reality, no matter what happens to you.  Your life insurance coverage can be used to fund your kid’s higher education, eliminating the need for them to rely on devastating student loans.