When families make the decision to purchase life insurance, they are often in the process of experiencing a major life-altering event such as getting married, starting a family, or purchasing a home. In fact, there are many good reasons for purchasing a insurance policy and most of us, at some point in our lives, will realize that owning insurance is very important to ensure our sense of security. Can you even imagine the anxiety of driving on the freeway without auto insurance? All of us know that at some point an accident is almost inevitable. When you purchase life insurance, you are making a plan to be sure your family will be safe from the effects of losing your contribution to the household income
Life insurance insures your life and pays your survivors.
Importance of insurance No one likes to think about the need for life insurance, but if you were no longer in the picture what would happen to the people who depend on you for financial support?. Even if the deceased has some life insurance, the amount is often inadequate. insurance is an essential part of any financial program. Your insurance coverage should be reviewed regularly as changes occur in your life, career and financial goals. Most people buy insurance to replace income that would be lost at the death of a wage earner. Proceeds from a life insurance policy also can help ensure your dependents are not burdened with significant debt when you die.
An important advantage of insurance is that the proceeds pass income tax free to beneficiaries and without going through probate. Most people think of life insurance only as a legacy something left behind after they die. If diagnosed as terminally ill, the insured may request payment of the insurance policies face amount instead of the death benefit being paid to a beneficiary. Portability Under most group policies employees can take their life insurance protection with them when they leave the company or retire and take advantage of group rates and the convenience of direct billing. Cash accumulation some insurance policies have a cash value account or investment component that lets you contribute premium in addition to the amount you pay for your insurance coverage.
Here are answers to other common questions about insurance. How much insurance you need depends on your financial situation and your specific circumstances at this point in your life. Our insurance needs calculator will help you estimate how much insurance you may need to sufficiently provide for the well-being of your loved ones. Everyone’s situation is unique and only you can determine the exact amount of life insurance you need.
Why insurance is so important for us?
On this post I’ll try to make a simple explanation about the importance of life insurance. Everyone surely die now, with health insurance, we can manage the risk of death leaves us with the things of value and benefit to families who leave when we die. With health insurance, we have to give stock to my family when we die, where the insurance company will pay the amount of money insurance money to my heirs, in this case is our family and that money can be used to pay for school children’s etc. That is the most common example of the benefits of life insurance. If expanded, the product according to each insurance company, there are many more benefits from life insurance. After we know a basic knowledge about the importance and the benefits of life insurance, then the second step is to act and find one of the best insurance companies that we can trust. Finding the best insurance companies and the right policy for our insurance plan can be hard if we didn’t know much about the terms in insurance plan.
In most families the major bread winner will have a term insurance policy as it can be very damaging to families when the main means of financial support is cut off. It is always difficult to determine if you should carry term or permanent life insurance.
Term life insurance really only offers death benefits such as funeral costs etc, so if you die then it is worth having the policy. Term insurance is the more affordable way to have death benefits. Currently term life insurance is the simplest form of insurance you can purchase. You can purchase large amounts of this insurance for a long time at very low prices. If you need to pay off a loan and may have difficulties if a family member dies or if you want to protect your children then term life insurance is an excellent insurance choice. The main benefit from term insurance is that you receive large payouts after a short time period. Having term insurance coverage is great if you are carrying debt as it can cover the debt instead of leaving your debt to your nearest relative.
It ensures that your family will not suffer the consequences of living without your earnings. You want to be sure that your family won’t have to uproot their lives and change their living standards in the event their income level is affected by your premature or unexpected death. And you can continue driving through the highway of life, without having to suffer the anxiety of wondering what will happen to those who depend on your earnings.