Due to the financial commitments that you must meet along the way of life and do contribute in some way to the family income, you need to provide something even after the death to protect the family, to help families meet the costs for a while, protect dependent parents to you or give a sense of financial security to the children or spouse.
Financial obligations could include funeral expenses, medical bills, mortgages, business commitments, tuition fees of children, and so on.
How much insurance a person needs will vary depending on lifestyle, financial needs and sources of income, debts, and the number of dependents? Insurance adviser or agent would recommend that you take out insurance worth five to ten times your annual income. The best thing is to talk to an expert and find out the reasons why you should consider insurance and what kind of insurance planning would benefit you.
An important part of the financial insurance plan is to provide peace of mind for any uncertainties in life.
1. Life insurance is a well-planned will provide funds to address debt maturities, mortgage and living expenses. Offers protection to the family you leave behind and serves as a source of income while.
2. Benefit received at death provide funds that can be used tax-free to pay for the necessities of life insured.
3. Life insurance can have a savings or pension component that helps you during retirement.
4. Having a valid insurance policy is considered as financial assets which improve the credit score when you need health insurance or a home loan or business loan.
5. In the case of bankruptcy, the cash value and death benefit insurance policies exempt from creditors.
6. Life insurance can be planned in such a way, even cover the cost of your funeral.
7. Term life insurance has double benefits, protects and you can get your money back during strategic points in your life.
8. Insurance protects your business from financial losses or liabilities in case a business partner dies.
9. It can contribute towards maintaining a family life style when one contributing partner suddenly dies income.
Insurance is vital to good financial planning and financial security but you need to assess your personal risk and long-term commitment. Insurance provide good stead throughout life and can be used in emergencies by way of withdrawal or loan.
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