It can be very liberating to adopt a minimalist lifestyle where you focus on achieving happiness over material abundance. While your focus may not be on acquiring stuff or material gain, you still have to think about practical things. You may have cut all the fat from your budget, but some things are well worth keeping, even if you, personally, won’t ever see them pay off. One of those is life insurance.
Life insurance provides for your loved ones after your death. So, you never really get any benefit from it directly. It can be a huge help, though. Even a minimalist who has gotten rid of debts and reduced material possessions can benefit from having a life insurance policy. Here’s a look at some of the reasons why you should consider life insurance.
Provides Financial Stability for Loved Ones
One of the biggest reasons to get a life insurance policy is that it provides for your loved ones after your death. This is especially important if you are the main wage earner or if you are a major contributor to finances in some way. Having this money can replace what is lost until your loved ones can find another way to replace it. Having money from life insurance can mean the difference between your family being able to afford essential expenses and them ending up in a financial crisis.
If you are sure your family will get by fine without your income, you may still want to consider life insurance because it is a nice financial windfall. Your family could put that into savings. It could be used for things like college expenses. While there are a lot of different factors that will play into what your family may need after you are gone, it is nice to know that you can still contribute and won’t leave your family having to deal with financial stuff.
Covers Final Expenses
Life insurance can also be great for covering those end of life expenses. This could be medical care costs or the costs of burial or cremation. It is quite expensive to die these days, and leaving behind these expenses for your loved ones can be a burden. When you have life insurance, there won’t be worry over how to afford these final expenses.
Offers a Peace of Mind
Perhaps one often overlooked benefit of life insurance is that it provides a peace of mind to those left behind. There’s no doubt that your family will be devastated from losing you. They shouldn’t have to worry about money. While money won’t bring you back or fill the hole you have left, it can give them some comfort.
Life insurance is something that many people pass on because they see it as a non-essential expense. However, for those who have benefited from a life insurance policy or, even more so, those who have had a loved one die without life insurance, it is clear that it is very beneficial. So, before you write off life insurance as something that doesn’t fit into your minimalist lifestyle, take a few moments to think about the ways it can be beneficial.