Insurance is designed to protect you from disasters and their financial consequences. There are many kinds of insurance and the the most important of these is considered to be life insurance which makes financial provision for your family following your death.
As there are various financial commitments you need to meet in life you need also to provide something even in death to ensure the security of the family home, to help the family meet expenses at least for a short time, to protect dependent parents or to provide security for your spouse and children.
These financial obligations could well include your funeral expenses, unsettled hospital and other medical bills, mortgage payments, business commitments and meeting the college expenses of the children.
Precisely how much insurance you will need varies depending on your lifestyle, financial needs and sources of income, debts, and the number of dependents you are responsible for. In the main an insurance adviser or agent would recommend that you take insurance cover that is five to ten times your current yearly income.
An important part of your financial planning, whole life insurance gives you peace of mind for any uncertainties in life.
1. Adequately planned life insurance will provide funds in the case of unexpected death to deal with debts, mortgage payments and day-to-day living expenses. It offers protection to the family you leave behind and serves as a cash resource.
2. It secures your estate on death by providing tax free cash which can be utilized to pay estate and other death duties.
3. Life insurance policies can also have a savings or pension provision which can help to fund you during retirement.
4. Some policies have riders such as restricted coverage of term insurance or critical illness for the children or spouse. There are particular rules considering eligibility for riders which you will have to clearly understand.
5. In case of bankruptcy the cash value, together with the death benefits, of any insurance policy is exempt from your creditors.
6. Holding a valid insurance plan is considered as having a financial asset and this will improve your credit rating when you need medical insurance or a home loan or business loan.
7. Term life insurance has double benefits as it protects and you can also your money back during strategic points in your life.
8. Life insurance can be planned such that it will even cover the expenses of your funeral.
9. Insurance can protect your business from financial loss or any liabilities in case a business partner dies.
10. It can contribute towards sustaining a family’s standard of living when one contributing partner dies unexpectedly.
Insurance forms a vital part of sound financial planning but you do have to evaluate both your personal risk and your longer term commitments.
Plans, like a whole life insurance plan, give you the security you need for your dependents and also act as a good form of financial security against which you are able to borrow. So, why not ask for some of the best free life insurance quotes available today.
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