Planning our family’s financial future after our death may be the last thing in our minds when we’ve just become new parents, but it is extremely important, as there is no guarantee that we’ll live to see our kids all grown up and independent. Even if writing a will when you’re still young sounds grim and pessimistic, it’s actually a wise way to prepare for the future, which, let’s all remind ourselves, is unpredictable.
You don’t need to be rich to have an estate plan and a life insurance policy. Likewise, hefty investments, multiple properties, rare collections, and heirlooms aren’t also necessary to financially secure your family. In other words, people should leave their legacies no matter how big or little they earned while they were living.
That said, here are the reasons to invest in your funeral planning even if you’re still healthy and young:
1. Life Insurance Covers for Your Funeral Expenses
If you died without life insurance, the first thing you’ll be leaving behind is a financial burden. Even if your surviving family members have enough to pay for your funeral, it will give them more comfort knowing that you’ve spared them from it. Term life insurance policy is suitable for most people, since its coverage lasts for 20-30 years, just enough time for your children to grow up and be independent. But if you prefer a more affordable policy, you may opt for final expense insurance or “burial insurance” instead.
This policy’s death benefit is designed to cover for funeral expenses, but your beneficiaries are actually free to use it for other purposes, too. Get in touch with experienced and reputable agents selling final expense insurance to know more about this policy’s benefits.
2. A Will Protects Your Heirs and Assets
Without a will, it is the state that will decide how your assets will be handed over among your heirs. The last will may be something you’d be hesitant to discuss with your children when you’re all older, since issues usually arise from it, especially if you’d have at least one child that turned out to be irresponsible.
Quarrels might stem from it, along with drama, but it’s better to go through them than leave the state to decide which children get a particular estate of yours. Besides, bigger fights will certainly occur without a will, so think of it as a way to mitigate whatever family issues you might have in the future.
3. Organizing Your Documents Ensures Continuation of Any Unfinished Business
Planning for your death isn’t only about deciding which heir inherits a certain asset, but also ensuring that whatever unfinished business you’ll leave behind will be attended to. For example, caring for a pet, or a child if you’re a young parent. That said, prepare a document with instructions on how to perform your daily duties, and organize them through an estate planning company or just in your safety deposit box. Don’t forget to assign a trusted loved one to be in charge of those documents when you pass away.
Bear in mind that preparing financially for your death doesn’t mean you’re looking forward to it nor attracting that fate early on. It’s only an act that proves how much you care for your family that death won’t stop you from providing for them. You and your family might be uncomfortable with it now, but when that time comes, they’ll realize how it would’ve been different and unfavorable if you hadn’t prepared.