10 Key Reasons Why You Need A Life Insurance Policy
Insurance is designed to protect you from disasters and the financial burden which so often follows. There are many forms of insurance of which the basic and most important is life insurance which provides for your dependents after your own death.
As there are various financial commitments that you need to meet in life you also need to provide something even in death to ensure the security of the family home, to assist the family to meet expenses for a while, to provide for dependent parents or to secure your spouse and children.
Financial obligations might include things like funeral expenses, outstanding medical bills, mortgage payments, business commitments and meeting the college expenses of the children.
How much insurance you need will vary depending on your lifestyle, financial needs and sources of income, debts, and how many dependents you are responsible for. As a rough guide you should have insurance which is five to ten times your present annual income.
As a vital part of any financial planning, whole life insurance provides peace of mind for any of the uncertainties of life.
1. Adequately planned life insurance will provide money in the event of unexpected death to deal with outstanding bills, mortgages and normal living expenses. It offers protection for the the spouse and children you leave behind and acts as a cash resource.
2. It gives security for your estate after your death by providing tax free cash which can be utilized to pay estate and death duties.
3. Life insurance policies can also include a pension or savings component which provides for you in retirement.
4. In some cases plans include riders such as restrictions on the coverage of critical illness or term insurance for a child or spouse. There are certain rules considering eligibility for riders that you will need to determine clearly.
5. In the case of bankruptcy the cash value, along with the death benefits, of any insurance policy is exempt from creditors.
6. Holding a valid life insurance policy is considered as having a financial asset and this will improve your credit rating when you want health insurance or a home or business loan.
7. Term life insurance can have a double benefit as it provides protection for your spouse and children and you can get your money back at important points in your life.
8. Life insurance can be arranged in such a manner that it will even cover the expenses of your funeral.
9. Insurance can protect your business from financial loss or any liabilities in the event of the death of a partner.
10. It can contribute towards keeping a family's standard of living if one contributing partner dies suddenly.
Insurance forms a vital part of sound financial planning but you would have to evaluate both your level of personal risk and your longer term commitments.
As there are various financial commitments that you need to meet in life you also need to provide something even in death to ensure the security of the family home, to assist the family to meet expenses for a while, to provide for dependent parents or to secure your spouse and children.
Financial obligations might include things like funeral expenses, outstanding medical bills, mortgage payments, business commitments and meeting the college expenses of the children.
How much insurance you need will vary depending on your lifestyle, financial needs and sources of income, debts, and how many dependents you are responsible for. As a rough guide you should have insurance which is five to ten times your present annual income.
As a vital part of any financial planning, whole life insurance provides peace of mind for any of the uncertainties of life.
1. Adequately planned life insurance will provide money in the event of unexpected death to deal with outstanding bills, mortgages and normal living expenses. It offers protection for the the spouse and children you leave behind and acts as a cash resource.
2. It gives security for your estate after your death by providing tax free cash which can be utilized to pay estate and death duties.
3. Life insurance policies can also include a pension or savings component which provides for you in retirement.
4. In some cases plans include riders such as restrictions on the coverage of critical illness or term insurance for a child or spouse. There are certain rules considering eligibility for riders that you will need to determine clearly.
5. In the case of bankruptcy the cash value, along with the death benefits, of any insurance policy is exempt from creditors.
6. Holding a valid life insurance policy is considered as having a financial asset and this will improve your credit rating when you want health insurance or a home or business loan.
7. Term life insurance can have a double benefit as it provides protection for your spouse and children and you can get your money back at important points in your life.
8. Life insurance can be arranged in such a manner that it will even cover the expenses of your funeral.
9. Insurance can protect your business from financial loss or any liabilities in the event of the death of a partner.
10. It can contribute towards keeping a family's standard of living if one contributing partner dies suddenly.
Insurance forms a vital part of sound financial planning but you would have to evaluate both your level of personal risk and your longer term commitments.
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