Life

Why You Need a Life Insurance?

Why you need life insurance

Life insurance is something that must have been sold to you often. Perhaps you bought not because you thought you needed it but because you were tired laying off purchase each time you got a chance. Below are 10 reasons why you should buy or appreciate the life insurance policy you’ve bought.

1. Burial Expenses Are Covered

No one prays for the demise of their loved ones but we can’t predict the future. And when the unexpected happens it’s not easy putting up a burial because of its too many expenses. But with a life insurance policy, the burden is lifted off from you and your family.

2. Taxes on Properties

When one passes away, a life insurance policy can cover the tax bill on the properties they left for their loved ones thereby taking the burden off their personal heir.

3. Affordable Coverage

People don’t buy a life insurance policy because they think it’s expensive but coverage often ends up pretty affordable for most people. You can buy a term life insurance policy which is cheaper than whole life insurance. One who’s in good health can find coverage of $1 per day.

4. Payment of Debt

In the case of death, life insurance ensures that your debts are paid so that your creditors don’t claim from properties or money you left behind for your loved ones.

5. Build Cash Value

Whole life insurance allows you to build up cash value over time. This may come in handy if you have a financial emergency down the road because you have access to the cash value at any point in time.

6. Financial Protection

It’s important you consider what would happen to your loved ones if you were to die suddenly. This is especially true if your loved ones rely solely on your income. Life insurance gets them financially protected from monthly bills if you pass on.

7. Educational Protection

Life insurance payouts can actually provide a good supplement to your savings towards your child’s education. Even if your child borrows money to get through school the loan can be honoured and wiped out by an insurance company.

8. Diversify Investments

Universal life policies are tied to a specific investment product. As a tool for investment, policyholders receive dividend payments based on the product’s performance. It’s advisable you read the fine print before you dive into this type of insurance. That way you’ll know the potential risks and returns before you commit.

9. Business Coverage

It’s important that you have a life insurance policy on your business. This covers your obligations so your efforts don’t go to waste. If you’re in a partnership with someone you should both have coverage. That way, if one of you dies, the other isn’t left with the financial burden

10. Rest of Mind 

With life insurance policy your unpredicted future and those of your loved ones are safe because you can prepare for uncertainties. Even with a small policy, you can have peace of mind.

Austin Opara
Austin Opara is contributor to My Top Insurance Blogs and a freelance writer.

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