Life is very uncertain and death can strike at any time and without a warning. You can be in perfectly good health and a freak accident like a drunken driver or a broken lift can claim your life in a second. Suddenly your family is not only bereft by your death but will also be faced by an enormous financial burden. So, – how to ensure your family is well taken care of even if you are gone tomorrow – is a thought that must occupy the minds of most adults especially if they are married and have the responsibility of a family.

Even people who are single and do not have a wife and children can still have dependents like parents or a differently abled sibling they need to care for. As soon as a couple gets married, they may think of spending on other things like a car or a house. Once kids arrive, there will be other expenses like school fees, holidays, extra curricular activities, college tuition and more. This could make them put off financial investments for they could be paying large amounts by way of mortgages and loans. However, a sensible adult must realize that he or she must make provision for the future so that the family is well taken care of in case of their untimely demise.

If the bread winner of the family dies due to some unforeseen circumstances, the spouse is left to bear the financial burden. Even if the spouse is working, the fact that the income has halved means that her financial commitments are more. It is even worse when the spouse is a homemaker. It is not easy to suddenly get a job especially if she does not have any employable skills. So, how will she make ends meet and pay all pending bills? If the home or car is bought using a loan, chances are that she will lose both due to her inability to meet the loan payments.

Just imagine this scenario of your family being driven out of their home and with no solid income to take care of their basic needs of food, clothing and shelter. To avoid this eventuality, responsible heads of families must learn to start putting aside some money every month by way of savings which can accumulate and provide financial security for their family in case they die suddenly. Even if by good fortune you live till you are old, the money invested is not a waste but will provide you with a good standard of living after your retirement.

Apart from investing in long term deposits, another form of safe investment is life insurance. Life insurance protects your family and provides much needed income to pay:

– Burial expenses
– Home Mortgages
– Car loans
– College tuition
– Monthly expenses like electricity and home repair bills

The main purpose of taking a life insurance is to ensure your family can maintain the same standard of living they were used to when you were alive. A life insurance policy is very useful for middle and lower income group people with modest salaries. Very rich people will have enough assets to bequeath their families and will not need investments like life insurance.

Individuals can choose between different types of life insurance – the chief ones being whole and term life insurance. Whole life insurance is for the entire life of the insured with an added cash value that will earn interest during the duration of the policy. While customers can borrow against this cash value, the benefit that is accrued is marginal compared to if you investing this amount in other investments.

Term life insurance protects the insured for a specific period and has no cash value. If taken when young and in good health for at least a 20 year period, term life insurance provides very good low cost protection. More people can afford term life insurance and there are many add-on policies that they can choose depending on their requirements and earning capacity.

An annuity is slightly different from an insurance policy for while with the latter, your beneficiaries get the insurance amount on your death, annuity protects you in case you outlive your policy. So, based on income and expense levels, you can decide on the right type of investment to make that can protect your family and help them pay all outstanding expenses even if you are gone tomorrow.

Author Bio: Article by Dunbar Winston of FuneralesReforma, who is a specialist in hispanic estate planning. For more information on servicios funerarios Guatemala and cremacion Guatemala, visit his site today.

Category: Death
Keywords: Funerarias Contratos funerarios, Funeraria guatemala, Funerales guatemala,