What Comes After A Life Without Life Insurance?
Insurance agents and companies get bad flak due to the outdated thinking that insurance plans mainly benefit them and not the policyholder. While it’s true that they benefit, of course through commissions and company salary, it’s not true that the policyholder gets the short end of the stick. The mindset comes perhaps from the fact that life insurance bears fruit only after the policy holder’s death, mainly benefiting his or her dependents.
After years of paying, you might not even be able to “enjoy” your investments but what are the consequences of living life without life insurance? Here are some of them:
1.Leaving your dependents in a financial crisis.
You will never face the biggest consequence of not having life insurance, but your loved ones surely will. If your family wholly depends on your income and savings for their daily expenses, then most likely they’ll be left with only a few months’-worth of savings after your death.
Whether you perish suddenly due to an accident or wither away due to sickness, not having life insurance puts great pressure on those you’ll leave behind which in turn may lead them to the second consequence.
2.Trapping your family in debt.
Without a steady income, your loved ones may be forced to take out loans after your death. At worst, it can become a never-ending toxic cycle of paying off the interest and taking out another loan, and then another thus dooming them to a life stuck in a rut.
In the fortunate case that this does not happen, they could still be hounded by recovery or funeral agents after your death if you did not have life insurance to cover your funeral costs. Additionally, if you have any outstanding loans, not having life insurance to pay for it after your death will simply transfer it to your living relatives.
3.Being unprepared for big expenses.
Let’s move away from the consequences your actions will bring to your family and focus on its effects on you.
In life, there are decisions or events that need a big financial payout. This could be starting a business of your own, marriage, foreign trips, medical emergencies, or the birth of a child. Your savings can easily be depleted by any of these situations. Or, in some cases, your finances can entirely prevent you from great opportunities like a new business or a sabbatical. You’ll be missing out simply because you didn’t have life insurance that could work as a financial backup.
4.Leaving your child’s or dependent’s future unsecured.
Whether it’s your children or your other dependents, your lack of life insurance will haunt them after your death, especially when it comes to their education. Globalization has made education broader but at the same time, more expensive.
Tuition fees and miscellaneous fees have skyrocketed these recent years and have been difficult to bear for many, what more if you’re no longer around? To avoid this, your best bet is availing of life insurance. There’s a plan called the life plan that will take care of all the financial needs of your child or dependent, even after you’re gone.
5.Being financially dependent on others in old age.
Retirement can be viewed in two different ways. It can spell out the golden years of one’s life, or it can be seen as the end of one’s financial independence. The people who view it as the latter most likely don’t have their own life insurances.
If you don’t have life insurance, you can unfortunately burden your grown-up children or other relatives when you reach old age. This can also cause friction and foster bitterness within the family. With life insurance, you can rest easy that you have a steady income for your needs and enjoy your retirement in peace.
6.Not being able to save taxes.
Taxes are deducted from your salary every cut-off. If you put it all together for a year, that’s a large amount of money! If you want to get the most of your hard-earned money, you can avail of life insurance as it offers income tax benefits.
In conclusion, not availing of life insurance is a big mistake as it has dire consequences for your family after you’re gone, and for you when you reach old age. Start taking a look at different types of plans and payment schemes. Change your mindset and look at it as an investment that your future self will thank you for.
Photo by Nina Uhlíková from Pexels
Photo by Elly Fairytale from Pexels