Pay off your outstanding debts, taxes, voluntary contributions, funeral expenses, probate fees, etc which may grow in course of time. Here again, the standard of living is not compromised.
Consider the impact of your death on your elderly parent who has no one but only you to depend upon. You wouldn’t want your parent to suffer. If you are a single parent then it is your duty to secure the future of your children. Your life insurance will pay the specified sum to your beneficiary and hence allow then the freedom from financial worries until they are able to cope with the hard times.
How much your company will pay depends on the policy you signed for. Your insurance needs will not be the same as your neighbor’s or friend’s. There are different kinds of cheap life cover to choose from. And to know which suits best for your family you must compare the types of policies and the coverages they offer. The best would be to get advised from your insurance agent. After all you wouldn’t want to be under insured or over insured. Just keep in mind the type of coverage you would like them to have after your death and don’t forget to look for a stable financial company.
Imagine the consequences of leaving your dependents with little coverage or even worst without coverage. I am sure they will have to deal with it for years to come.
