10 Key Reasons Why You Need To Have Life Insurance
Insurance in general is designed to protect you and your family from disasters and the financial burden which so often follows. There are many different types of insurance of which the basic and most important is considered to be life insurance which provides for your family after your own death.
Since there are a number of financial commitments you have to meet throughout life you need also to provide something even in death to secure the family home, to help the family meet expenses at least for a while, to provide for dependent parents or to secure your spouse and possibly children.
These financial obligations might include things like your funeral expenses, unsettled hospital and other medical bills, mortgages, business commitments and providing for the education expenses of your children.
Precisely how much insurance you will need varies depending on lifestyle, financial needs and sources of income, debts, and the number of dependents you are supporting. In the main you will need insurance coverage which is five to ten times your present annual income.
As a vital part of your financial planning, whole life insurance offers you peace of mind for any of the uncertainties of life.
1. Adequately planned life insurance will provide money in the event of premature death to deal with outstanding bills, mortgages and living expenses. It offers protection to the family you leave behind and acts as a cash resource.
2. It secures your hard earned estate after your death by providing a tax free cash sum that can be utilized to meet estate and death duties.
3. Life insurance plans can also have a pension or savings component which provides for you during retirement.
4. In some cases plans include riders like restrictions on the coverage of critical illness or term insurance for the children or spouse. There may be particular rules considering eligibility for riders which you will need to clearly understand.
5. In the case of bankruptcy the cash value, together with the death benefits, of any insurance policy is exempt from creditors.
6. Holding a valid insurance plan is considered as having a financial asset and this improves your credit rating when you arrange health insurance or a home loan or business loan.
7. Term life insurance can have a double benefit as it protects and you can also your money back during strategic points in your life.
8. Life insurance can be arranged such that it will cover even the expenses of your funeral.
9. Insurance can be used to protect your business from financial loss or any liabilities in case a business partner dies.
10. It can go a long way towards keeping a family's standard of living if one partner dies unexpectedly.
Insurance forms a vital part of good financial planning but you would have to assess your personal risk and your longer term commitments. - 23211
Since there are a number of financial commitments you have to meet throughout life you need also to provide something even in death to secure the family home, to help the family meet expenses at least for a while, to provide for dependent parents or to secure your spouse and possibly children.
These financial obligations might include things like your funeral expenses, unsettled hospital and other medical bills, mortgages, business commitments and providing for the education expenses of your children.
Precisely how much insurance you will need varies depending on lifestyle, financial needs and sources of income, debts, and the number of dependents you are supporting. In the main you will need insurance coverage which is five to ten times your present annual income.
As a vital part of your financial planning, whole life insurance offers you peace of mind for any of the uncertainties of life.
1. Adequately planned life insurance will provide money in the event of premature death to deal with outstanding bills, mortgages and living expenses. It offers protection to the family you leave behind and acts as a cash resource.
2. It secures your hard earned estate after your death by providing a tax free cash sum that can be utilized to meet estate and death duties.
3. Life insurance plans can also have a pension or savings component which provides for you during retirement.
4. In some cases plans include riders like restrictions on the coverage of critical illness or term insurance for the children or spouse. There may be particular rules considering eligibility for riders which you will need to clearly understand.
5. In the case of bankruptcy the cash value, together with the death benefits, of any insurance policy is exempt from creditors.
6. Holding a valid insurance plan is considered as having a financial asset and this improves your credit rating when you arrange health insurance or a home loan or business loan.
7. Term life insurance can have a double benefit as it protects and you can also your money back during strategic points in your life.
8. Life insurance can be arranged such that it will cover even the expenses of your funeral.
9. Insurance can be used to protect your business from financial loss or any liabilities in case a business partner dies.
10. It can go a long way towards keeping a family's standard of living if one partner dies unexpectedly.
Insurance forms a vital part of good financial planning but you would have to assess your personal risk and your longer term commitments. - 23211
About the Author:
Policies, like a whole life insurance plan, provide you with the security you require for your family and also act as a fantastic form of financial security against which you can borrow. So, why not request some of the best life insurance quotes on offer today.
posted by X - Men @ 3:00 AM
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