It is often said that nobody knows tomorrow, although nobody wishes for death but it is inevitable. Insurance is a coverage that provides financial compensation to those who deposit a sum of money monthly or yearly called the “premium”. It covers some or all expenses to be made in any type of future occurrence. Various types of commodities are insured but the most important of all is often times left unguarded.
WHY SHOULD I INSURE MY LIFE?
Lots of people die everyday and if you happen to be the breadwinner of your family and you were to pass away, it could have mind-blowing consequences on your loved ones leaving them susceptible to various allurements just to survive. Handling finances, paying off debt and still trying to maintain their standard of living can drown them up.
The least you can do for them is to secure your life and their future by buying a life insurance policy today.There are also a lot of benefits associated with this financial commitment even though you are young.
We will expressly show you in this article why you need to buy a life insurance policy now.
1.EASE DEALING WITH DEBT:
You might have an outstanding loan and your family members might not be able to pay it off and still live their lives comfortably, therefore any outstanding debt, home loan, auto loan, personal loan will be taken care of if you buy the right life insurance policy.
2. LONG-TERM GOAL ACHIEVEMENT:
As a young person, when you purchase the right life insurance policy, your long-term goals will be taken care of. Some of these policies are tied to certain Investment policies and at stipulated time frames can be broken. This helps young ones achieve their long-term goals like buying a home or planning a retirement.
If you are opting for an investment-linked policy, be sure to read the fine print to be fully aware of the potential risks and returns.
3. BUYING INSURANCE IS CHEAPER WHEN YOU’RE YOUNGER:
Not every young person needs life insurance, if you are still living with your parents without an emergency fund in your name then you might not need this. If you have aged parents or young relatives to cater for by the way, you need to seriously consider getting an insurance.
When you are single and young, insurance is cheaper and your insurability level is higher, so this is the best time to get this insurance policy. While getting it, do you due diligence to ensure the package is something you actually need.
4. YOUR BUSINESS IS TAKEN CARE OF AS WELL:
Life insurance is not just based off on your life and your families life. Some of these policies take care of businesses. If you own a business, your partner can purchase your percentage of the company in your demise without any hassle and all the money will be transferred to your family.
While we are all aware of the many death benefits provided by these insurance policies, we are not aware that they could also strengthen our financial position.
A term insurance provides protection for a specified period of time (10, 20 or 30 years) and pays out the benefits only if you die during the term. The policy will expire and coverage will end if you outlive your policy.
5. FORCED SAVINGS TOOL:
While you might find it hard to save, if you outlive your policy, the benefits become yours. A bit of extra cash is saved which can be borrowed while the policy is on or you can choose to see it for income.
6. YOU MAY NOT BE QUALIFIED FOR IT LATER:
While you may be young and healthy now, able to do various jobs and fund all your accounts, in years to come when you finally realize the need for life insurance, you may not be qualified for it due to little or no income, sickness and so on. It is also a coverage in old age as you can break it and use the fund to cater for your health.
These riders enhance the quality of your insurance. The accelerated death benefit rider, for instance, allows the policy owner to avail all or a part of the policy’s death benefit if he or she has less time to live due to a critical illness, or wants to use the money for medical treatment or related expenses.
7. PEACE OF MIND:
Death is inevitable, but knowing that you are leaving a financial legacy behind makes you feel more at ease about the whole prospect of it. The least you can do for your family is to secure their financial future.
8. LOOKING AFTER YOUR LOVED ONES EVEN WHEN YOU ARE GONE:
This is the most important factor of life insurance and the reason why you need to get it. Knowing that you gave your family the best you could even in death brings certain happiness. You certainly don’t want to let them down. Paying your child’s school fees, making sure your spouse gets much needed financial stability through life insurance is enough reason why you need to get life insurance today.
Life insurance is a great tool for both protection as well as helping a consumer save in a disciplined manner, which leads to creation of a good corpus.