5 Unexpected Things Your Life Insurance Policy May Cover
People often think of life insurance as one of those things they don’t really need, but have to have anyway (like taxes and mowing the lawn). It makes sense that you would be wary of purchasing a policy.
But did you know that even if you don’t have children or other dependents, you may still be able to collect from your life insurance?
Here are five unexpected things your life insurance policy may cover that most people don’t know about.
1) Accidental Death
If you or your spouse dies as a result of an accident, your life insurance policy may provide coverage. You can have accidental death coverage on either a single life basis or on the lives of two people.
The policy will pay the face amount shown in the Certificate of Insurance to the beneficiary if death occurs within one year from the date of issue.
It is also possible for accidental death benefits to be provided for accidents that occur beyond the 12-month period; however, additional premiums must be paid.
An insurer might not cover an accident that happens while driving under the influence of drugs or alcohol, unless it is legally allowed under state law.
Accidental dismemberment: If you lose a limb due to an accident at work, there might be coverage.
You can purchase accidental dismemberment insurance to provide funds for expenses incurred when a covered person loses a body part through an accident that is not caused by voluntary contact with any kind of animal.
The policy will pay the face amount shown in the Certificate of Insurance to the beneficiary if death occurs within one year from the date of issue.
2) Travel Expenses
One thing that many people don’t realize is that life insurance can cover travel expenses for the deceased person’s family.
If the person who died had a business trip booked, but never made it home, their family may be able to use their life insurance money to pay for their final expenses. What type of traveler are you?
If you’re an independent solo traveler with no one waiting at home or back in your hometown, then personal travel insurance will likely provide more coverage than life insurance.
If you’re traveling as part of a group, then buying group coverage may provide more protection for everyone in your party in case someone gets sick or injured and needs medical attention.
If you have children, take them along on your travels so they’ll have time to get to know other cultures and visit new places. You’ll also know where they are at all times in case something happens.
Consider purchasing cancellation insurance when planning a vacation. Some policies allow travelers to cancel up to 48 hours before departure if they have purchased both airfare and lodging from the same supplier – check with your agent about coverage specifics.
3) natural disasters
When you think of life insurance, do you think of it as just a way to get out of debt? There are many other benefits to having a life insurance policy.
For example, your life insurance may cover the cost of rebuilding your home if it’s destroyed by a tornado or hurricane. It might also help pay for funeral expenses or even provide money for your children’s education in the event that you die.
However, this depends on how much coverage you purchase and what your individual needs are. You’ll want to ask yourself a few questions before buying life insurance:
Does my family have the financial resources necessary for raising children without me? If you can’t answer these questions confidently, then life insurance is worth looking into. The one thing to keep in mind when purchasing life insurance is not all policies are created equal.
You will want to look at your specific needs and find an appropriate type of policy to meet those needs. Do some research and ask around because there are several types of life insurance policies available, each with their own set of pros and cons.
4) Job loss
Job loss is one of the biggest risks for any working American. Without a steady income, it’s difficult to keep up with mortgage payments and everyday expenses.
That’s where life insurance comes in; it can help provide a much needed safety net when you’re laid off.
Here are five unexpected things your life insurance policy may cover:
– Mortgage payments and other debt obligations
– College tuition for dependent children
– Funeral costs
– Cost of living expenses
– Replacement wages if you die from an illness or injury
– Loss of business
– Catastrophic medical bills – Long-term care needs not covered by Medicare
– Expenses for family members caring for a loved one that cannot work
5) final expenses
In the event of your death, life insurance can help cover your final expenses. This includes final medical bills, funeral costs, and any outstanding debts.
If you are married and have children under 18 years old, life insurance may also be used to provide for their education or living expenses.
If you are divorced but remarried, your new spouse could also benefit from this policy as a spouse-to-be. The amount would depend on how much money is left in the policy after all beneficiaries have been paid.
If you own a business, a life insurance policy could protect it against loss in the event of your death by providing enough money to keep it running until someone takes over management.
For example, if you were hit by a bus tomorrow, who would run your family restaurant? If you have no other family members that work with you at the restaurant, then maybe an unplanned death will put them out of business.