Is It Risky to Drop Life Insurance Coverage During Tough Financial Times?

someone pulling money out of a wallet

Determine if you should cancel your life coverage.

Most people purchase life insurance coverage to help keep their family financially above water when the policyholder is no longer around. It can be difficult to put money toward something that you hope never happens, especially if you and your family are struggling to make ends meet. Although it’s tempting to drop your life coverage when you’re working hard to stick to a budget, it’s smart to keep your policy if possible. Here’s why.

Life insurance can prevent the loss of your family’s home.

If your family is unable to afford the cost of your home without your income, they may have to make the difficult choice of selling it. Your life insurance policy can help your surviving family members cover expenses like a home mortgage or other outstanding debts.

Life insurance prevents an unplanned return to the workforce.

If a surviving spouse is staying home to raise young children, a lack of financial coverage could force your other half to return to work. This could also lead to unplanned childcare costs and other expenses that haven’t been factored into your family’s household budget.

Life insurance prevents children from taking on student loan debt.

There’s no doubt about it, education can be expensive. A life insurance policy can help your children cover the costs of their higher education if you are no longer around to help pay for it. Rather than take on large student loans, their tuition burden may be eased, which may help them create a stronger financial future.

For more information about selecting the right life insurance policy to suit your needs in Phoenix, Arizona, contact the team at American Premier Insurance. As life insurance experts, we’re able to walk you through the process of selecting the right policy to meet your needs.