Life insurance is one of those products that we often don’t pay much attention to. This is usually because we don’t really think about death or think that we are going to live forever, but this isn’t true and having a good life insurance is vital.
A life insurance policy is one that pays out a lump sum to the chosen beneficiary in the event of death. Life insurance policies range in price and the premium that you will pay will depend on the level of cover that you have chosen.
So, what is the point of life insurance? The point is to protect your loved ones from financial issues by offering them financial assistance during a difficult time. It is even more important to have life insurance if you are the only one that is earning an income as your family will be able to lead and afford the lifestyle that you have provided for them in the event of your death.
Think about all the expenses that make up your life like grocery bills, school fees, bond repayments and such. Life insurance ensures that your family can continue to meet these financial expenses after their main source of income has gone.
Here are 5 reasons you need life insurance
Financially Protect Your Family
You will definitely need to get a life insurance policy if your family is dependent on you financially, so that they are able to afford their lifestyle. If you have children or are the sole breadwinner, then it is even more important as your life insurance policy will replace your income once you have passed and allow your family to continue the standard of living they have become accustomed to. You will also need to provide enough cover that can be used for the expenses of a growing family like school fees etc.
Leave Something Behind
If you don’t have any assets that you are able to pass on to your beneficiaries then you can create an inheritance with a life insurance policy by naming your loved ones as the beneficiaries. This is a great way for you to set your kids up with a solid financial future and to provide them with the finances they may need in the future.
Wait…keep reading…there are still important reasons below…
Don’t Let Debts Ruin Your Family
Not only do you need life insurance to cover everyday living, you will also need to provide cover for any outstanding debt that you may leave behind like credit cards, a mortgage, a car loan etc. Other expenses that you will need to provide cover for is the funeral and burial costs. The idea is then to not leave your family and loved ones with any additional financial burdens once you have passed.
Providing for Your Children Once You Are Gone
Just like most parents, you will want to ensure that your kids are taken care of once you are gone. You will want to be able to provide a top-notch education as well as fund other life events like their wedding or a business venture. You should then opt for additional coverage whilst your children are still at home.
Sleep Better Knowing You Are Protected
There is no way of knowing when we will pass away, but we do know that it will happen. Money isn’t able to replace a person, but life insurance is able to protect your loved ones from the uncertainties in life. Having life insurance will bring both you and your family peace of mind. You will know that your family will be taken care of financially if anything were to happen to you. Life insurance can cover expenses associated with your death, debts and allows your family to carry on with their life without the worry of money.
Life insurance is then a must and is not an insurance product that we can overlook. Life insurance will protect your family financially and ensure that they are able to afford their life once you are gone. You can give your family the peace of mind they need and you will know that if anything happens, your family will not suffer financially. Compare life insurance quotes and choose the product that offers you the best premium for the level of cover that you need and know that your family is covered.