If you think life insurance is not needed, then you may be surprised to discover that you’ve been mislead. The truth is, life insurance is as important as your next life breath.
But it’s not your fault if you’ve been believing that you don’t need it or perhaps even ignoring to gather information on this topic. That’s because there’s soo much conflicting reasoning behind this topic.
The good news is that it’s not too late to turn things around, start getting better information on insurance. And it starts right here, right now, since you’re about to discover why life insurance is important.
Let’s get started…
Insurance is designed to protect a person and the family from disasters and financial burdens. There are many kinds of insurance of which, the basic and most important is considered to be life insurance. It provides for the dependants after your death.
Since there are certain financial commitments you need to meet throughout life and do contribute in some way to the family income, you need to provide something even in death—to secure the home, help the family meet expenses for a while, protect dependant parents, or secure the children or spouse.
Financial obligations could include funeral expenses, unsettled medical bills, mortgages, business commitments, meeting the college expenses of the children, and so on.
How much insurance a person needs would vary, depending on lifestyle, financial needs and sources of income, debts, and the number of dependants? An insurance adviser or agent would recommend that you take insurance that amounts to five to ten times your annual income. It is best to sit down with an expert and go through the reasons why you should consider insurance and what kind of insurance planning would benefit you.
As an important part of your financial plan insurance provides peace of mind for any uncertainties in life.
Do I really need life insurance?
- Life insurance correctly planned will on premature death provide funds to deal with monies due, mortgages, and living expenses. It offers protection to the family you leave behind and serves as a cash resource.
- It secures your hard earned estate on death by providing tax free cash which can be utilized to pay estate and death duties and to tide over business and personal expenses.
- Life insurance can have a savings or pension component that provides for you during retirement.
- Some policies have riders like coverage of critical illness or term insurance for the children or spouse. There are certain rules regarding eligibility for riders which you will need to determine clearly.
- Having a valid insurance policy is considered as financial assets which improves your credit rating when you need health insurance or a home loan or business loan.
- In case of bankruptcy, the cash value as well as death benefits of an insurance policy is exempt from creditors.
- Life insurance can be planned such that it will cover even your funeral expenses.
- Term life insurance has double benefits, it protects and you can get your money back during strategic points in your life.
- Insurance protects your business from financial loss or any liabilities in case a business partner dies.
- It can contribute towards maintaining a family’s life style when one contributing partner suddenly dies.
When should you get life insurance?
Insurance is vital to good financial planning and security but you would need to assess your personal risk and long term commitments. Insurance stands a person in good stead throughout life and can be used in case of emergencies during a life time by requesting a withdrawal or loan.
However, most individuals under age 25 are more concerned with paying current bills than acquiring additional ones. While the optimal age to purchase life insurance is under 35, Millennial’s are the least likely to purchase a policy.
What should I look for when buying life insurance?
- Decide how long you need coverage.
- Calculate how much life insurance you need.
- Think about other objectives.
- Name a beneficiary.
- Talk with a trusted adviser.
Do most people need life insurance?
Not everyone needs life insurance.Insurance proceeds are a handy source of cash to pay the deceased’s debts, funeral expenses, and income or estate taxes.People who have no minor children or financially strapped dependents might not need life insurance.
You just learned why is it important to have a life insurance? . And that means you can now talk to your insurance agent about your options.
To that end, let’s quickly recap what you learned over the last 500+ words:
- You learned why life insurance is a good investment.
- You found out when should you get life insurance.
- What is the purpose of life insurance
- And much,much more.
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Are you from the USA? find the best policy here using Life Insurance Companion.