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top 10 reasons why you need life insurance

The purpose of insurance is to shield an individual and their family from calamities and monetary losses. Although there are many different types of insurance, life insurance is thought to be the most fundamental and significant. It takes care of your dependents when you pass away.

Even in death, you must provide for your family in order to secure the property, assist in temporarily covering expenses, safeguard dependent parents, and/or secure your spouse or children. This is because you have certain financial obligations that you must fulfill during your life and do make a contribution to the family’s income.

Funeral costs, unpaid medical bills, mortgages, business commitments, paying for the children’s college education, and other financial duties are examples of financial obligations.

The amount of insurance required would vary based on a person’s lifestyle, debts, number of dependents, financial needs, and income sources. It would be advised by an insurance agent or counsel that you obtain insurance worth five to ten times your yearly salary. It is advisable to discuss the benefits of insurance with a professional and go over the reasons you should think about getting insurance..

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 for critical illness or term insurance for the children or spouse. There are certain rules regarding eligibility for riders, which you will need to clearly determine.
  5. Having a valid insurance policy is considered a financial asset that improves your credit rating when you need health insurance, a home loan, or a business loan.
  6. In cases of bankruptcy, the cash value as well as the death benefits of an insurance policy are exempt from creditors.
  7. Life insurance can be planned so that it will cover even your funeral expenses.
  8. Term life insurance has double benefits: it protects you, and you can get your money back at 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 lifestyle 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 keeps a person in good stead throughout life and can be used in case of emergencies during a lifetime by requesting a withdrawal or loan.

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