People obtain life insurance for many different reasons.  A policy can act as a financial investment vehicle, a way to pay off estate taxes, and even a way to borrow money.  While these reasons are all valid, the created purpose of insurance in general is to prepare a strategy in case of emergency, whatever each personal “emergency” is.  Regarding life insurance, we can not forget that a policy can provide a significant lump sum of money at a very appropriate time.  It can be very expensive to buy cemetery plots, plan a funeral, and purchase a monument, and all of these costs are usually incurred in a short time period.  What better way to pay for these expenses than with a life insurance payout.

I have spoken about making your cemetery, funeral, and monument arrangements in advance, and the same goes for end of life expenses.  If you start planning at an early age, life insurance can be relatively cheap.  A small amount of input on your part, can yield a significant amount of output from the insurance agency.  The fact that insurance agencies are willing to work this way is beyond the scope of this post.  Never the less, with the right strategic planning, final expenses can be easily subsidized.  At the time of a death, family members have so much to deal with, including emotional grief; It is simply irresponsible to wait until a loved one passes to have to worry about finances.

If you have not already spoken to a financial advisor, make it a point to do so.  When the time comes, you will be grateful that you have planned accordingly.