Why Life Insurance Is A Crucial Financial And Mental Health Decision

All too often, we find articles extolling the virtues of life insurance that focus solely on the responsible fiscal nature of providing for our loved ones in the event of our untimely demise. And that is undoubtedly a persuasive factor in many people purchasing a policy. However, there is another crucial reason to consider life insurance, which eschews the altruism of protecting others and provides tangible benefits for the policyholder.
Mental health issues come in all forms, and anxiety about the future can play a damaging, debilitating role. Although availing ourselves of life insurance will likely not resolve the issue altogether, it is a largely unexplored benefit. This article looks at both its financial and mental health implications.
Live for today, plan for tomorrow
Life insurance is one of those rare purchases in life that we recognise would be sensible and beneficial, yet somehow manage to procrastinate indefinitely over. None of us wants to linger on thoughts of our mortality, but failing to address the subject and handle it efficiently can cause much more long-term anguish and suffering than deciding to commit to the process and get on with it.
Modern technology has made acquiring life insurance remarkably straightforward, and the sense of relief and accomplishment it can create is palpable. It is undoubtedly a sound decision that guarantees financial stability for those left behind. However, its psychological effects, as anxiety about what will happen when we’re gone is taken out of the equation, are hard to quantify but undoubtedly genuine.
Who can benefit from life insurance?
If we’re talking about financial benefits, those who stand to benefit most from a life insurance policy are the people with immediate dependents. Breadwinners with young families use life insurance policies to protect their loved ones in case disaster strikes, ensuring their standard of living will not be adversely affected. But people worry about all kinds of things. Some fear the shame and embarrassment of leaving debts and final costs for someone else to handle when they’re gone. Life insurance can be adjusted to honour debts, make charitable donations, and cover funeral and burial costs if that is a significant concern.
Viewing life insurance as a tool to relieve worry makes it easier to tackle. Along the way, we might even better understand what worries us most. Something we are not always effective at doing, even if we can see the issues that concern others.
The bottom line with life insurance
Predicting the future is not something we can hope to achieve, but we can do our best to mitigate the negative consequences of worst-case scenarios. With a comprehensive life insurance policy in place, one significant worry can be compartmentalised and put away. Will it solve all our worries and mental health issues? Assuredly not, but taking practical steps to address an area of genuine concern can only be a positive action.
Each step we take leads us closer to living the full, extraordinary lives we dream of, and not all steps are as straightforward and easily achieved as buying life insurance. Peace of mind is a valuable commodity that eludes more people than we may ever realise. Any actions we can take to alleviate pressure and allow us to focus our mental energies elsewhere is priceless.
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