“A life without insurance is referred to a tree without root” is a statement which reveals the important of Life insurance to all.
Though we have whatever we want in our life, if there is not a support system to protect those, there is no point in having them all. There the life insurance plays a vital role in our life. Life insurance protects our family and let us to leave them a non-taxable amount at the time of death. Though, we will not be with them after our death, that sum assured money replace ourselves and protect them as being in our place. It is also used to cover our mortgage and our personal loans, such as our car loan. The individual life insurance follows when we retire and no longer insured by the employer. This insurance usually replace the family income when resources are less so they can maintain the quality of life. Covering our financial commitments, allowing family to maintain their standard of living, ensuring business continuity, covering death-related expenses, completing life insurance coverage offered through the employer and allowing us to leave a legacy to the family are some of the importances of life insurance.
Once we understand the importance of taking out a life insurance policy, we need to make the right choice. To do this, first we need to question ourselves about our needs and purchase a product that works for our family and insurance premiums that fit with our budget. Then, we should quest a financial security advisor in an Insurance company to get more knowledge regarding life insurance policies. Therefore, in order to transform ourselves as a policy holders we should prepare us to be answered for the following three main questions. Let us focus on them in detail.
Everyone of us have various life goals which may differ from person to person. Our personal, family and professional goals will also determine our choice of life insurance. For instance, our retirement age, the goals of our children, the career path they wish to follow and so on. This will help us to evaluate how much extend life insurance we should consider to protect our beloved ones in the event of our death.
Family and Career
If we look into our family situation, our age, our health situation and the category of our employment should be considered. Life insurance is supportive, whether you are single or in a relationship. In the event of our death, our loved ones will have to pay for our funeral expenses and pay off any financial liabilities which we have, such as debts. When you have an insurance coverage, your debts will not be a burden for your family members. In addition, our loved ones may also have to bear some of our already shared responsibilities, such as credit card fees, lease, car payment, mortgage payment, student debt, etc. If there are children, life insurance will let us replace the lost income from one of the parents to provide for the children’s needs.
Life insurance is also an effective financial tool for protecting our business as well. It ensures the financial security when something bad happens to our assets. If we think in a situation suppose we start our own business with a partner who passes away prematurely, we will be in a shortage of fund to move forward with our business. An unfortunate event such this could have a major impact on our company as well in our life. So, here is the place where we stuck in our life. Since we do not have coverage, getting a life assured policy will let us to cover our needs as a self-employed person and will avoid future concerns for our family.
After planning our situation and life goals, we need to figure out what type of life insurance is suitable for us to continue in life. Insurance coverage refers to the amount of risk or liability that is covered for an individual or an organization by way of insurance services. Normally, it is categorized as short-term coverage and long-term coverage. If we wish a coverage that generates liquidity and surrender value that can be used to reach our goals, then life insurance is the best choice which we have in front of us.
Once we get a clear understanding about these key points, then it is the time for us to visit to a financial security advisor in an Insurance company to identify an appropriate path for us to travel in our life journey that meets with our needs.
At the bottom line, our life is full of uncertainty. The important thing is to choose the suitable life insurance for our budget and our needs. Over the years, our needs, family situation and our life goals will evolve. When that happens, it will be time for us to re-evaluate the right type of insurance and make ensure that we are covered properly by a life insurance…!