The death of a loved one is a very traumatic experience for those left behind. And when the death is that of the main breadwinner, it can be doubly traumatic. There are however insurances which one could take to avoid the complications of unexpected deaths.
Take for example the home mortgage loan. The loan would usually be taking in the name of the main breadwinner of the family. There are banks which offer protection to the co-maker and beneficiaries in cases of death. The bank insures the borrower so that in cases of death, the loan would be paid in full by the insurance leaving the house or property secured for life. The amortizations would no longer have to be paid, a big financial help to those left behind. However, these are only for cases of natural or accidental death, this policy usually never covers suicide.
Now, in cases of credit card debts. Again, there are some banks that insure the main credit card holder and free the spouse and children of the unpaid bills in times of death. However, there are some banks that do not cover these provisions. So before taking out a credit card and using it like there is no tomorrow, read the ultra-fine print and ask questions regarding issues of death and debts. Try to avoid those offered with no insurances, this is the only way you can avoid a financial crisis in the future.
Another thing to look at is taking out insurance on the mortgages themselves. The insurance will not just cover for home loans; there are some which offer for other types of loans so it is best to shop around for an insurance company that offers packages to this effect.
Some would not advise this move as they say that the life insurance will cover the expenses. But that is not the point. Even if there is a life insurance, this would not take care of the monthly amortizations which have to be paid even after the death. The mortgage insurance will guarantee that the loan (whatever it may be) would be fully paid, leaving the spouse and beneficiaries free from the duties. The life insurance can cover for other expenses.
Remember, when planning for the future, nothing is set in stone. It may sound expensive, but the best way to protect yourself financially is to make all the possible insurances that you can have a better future without the main breadwinner.