It got my practical side thinking. How on earth are their families paying off their bills? Life insurance could be the answer. Life insurance can do all of the following:
- Pay off debts
- Pay funeral expenses, which average $8000
- Improve your credit rating
- Give you peace of mind
- Supplement your retirement if you set it up as an annuity
The good news is life insurance is pretty affordable. The bad news is many policies require a health screening before you can enroll. That's why it's important to set up a policy before you develop serious health issues. When you do that the policy is a lot less expensive and is usually good for at least 10 years.
Before you set one up, think about your goals. Do you have coverage through your work? If so this will likely cover your funeral expenses. You might then just need coverage for any debts that may incur. Of course, you have to play a guessing game. It's tough to predict illnesses like cancer but when they occur they can be quite costly!
I suggest you find a policy that you can comfortably afford. If you're hoping to supplement your retirement then it should also be one that you can add money to and earn interest on. Some annuities even offer long term care riders which will help to defray the outrageous costs of a nursing home.
The bottom line is we, as humans, are fragile beings that can die at any moment. Instead of worrying about it set up a policy to give yourself peace of mind. Your family will thank you!