Sunday, February 5, 2012

10 Reasons Why We Need Life Insurance

Insurance is designed to protect a person and the family from disasters and budgetary burdens. Learned are numberless kinds of insurance of which, the basic and most important is considered to factor elan insurance. Existing provides for the dependants nearest your tomb.

Since competent are certain fiscal commitments you the urge to reconciled throughout brio and organize contribute grease some journey to the family income, you must to store something commensurate magnetism death—to secure the down 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.

1.     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.

2.     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.

3.     Life insurance can have a savings or pension component that provides for you during retirement.

4.     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.

5.     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.

6.     In case of bankruptcy, the cash value as well as death benefits of an insurance policy is exempt from creditors.

7.     Life insurance can be planned such that it will cover even your funeral expenses.

8.     Term life insurance has double benefits, it protects and you can get your money back during strategic points in your life.

9.     Insurance protects your business from financial loss or any liabilities in case a business partner dies.

10.     It can contribute towards maintaining a family’s life style when one contributing partner suddenly dies.

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.

1 comment:

  1. Thinking about life insurance and don’t know where to start? Try IntelliQuote. I work with them and you can get free quotes on rates from several different providers without any pressure to buy. Want to talk to a human? They have agents available to help find the policy that is right for you. Not ready? No pressure. But at least it’s a place to start. http://bit.ly/xgpFtc

    ReplyDelete