Why life insurance is important?

Are you aware about the financial risk your family could face in your absence? Do you even know how will they survive without having any financial protection?  Life Insurance is the best answer to such questions as it provides an financial protection to your family .It helps in safeguarding your family’s future when you are gone.

Life Insurance is the policy which helps in covering all the expenses for a period of time in case of unexpected death of your loved one or the breadwinner of the family such expenses include medical expenses , tuition expenses, funeral cost etc. Basically, it provides an financial stability or support to your family after your dismissal.

Let’s understand why Life insurance is important and what are the  benefits of having life insurance:-

1. Safeguarding Financial Needs - Life Insurance is the policy which helps In securing the financial needs of your dependents in case of your unexpected death. It covers all the expenses for your dependents for some period of time depending upon the term of the policy.

2. Debt Clearance – Life Insurance can be used to repay any pending debts if you have any. They can be helpful in covering debt expenses like car loan, credit card, home loans or any other liability.

3. Peace of mind - By knowing that your dependents will be financially secured after your unexpected death can provide you peace of mind. Life Insurance will take care of your family’s expenses and will provide financial support to your loved ones in your absence .

4. Educational Expenses – Life Insurance can help in securing or protecting your children’s future by providing funds for their educational expenses, when you are not around.

5. Assistance during medical care – Life Insurance can act as an assistance in case of serious medical emergency. It can provide funds for the expensive medical treatment or medicines required at that moment.

TYPES OF LIFE INSURANCE

1. 1. Term Life Insurance – Term life insurance provides coverage for a specified term. Generally these terms range from 10-30 years . If the insured person dies during the term, then the policy will pay out the death benefits to the recipients.

2. Whole Life Insurance – Whole life insurance provides coverage through out the entire life of the insured person, as long as the premium are paid. Whole life insurance is a type of permanent life insurance.

      3.Universal Life Insurance - Universal life insurance is a flexible type of permanent life insurance which allows policyholders to adjust          their premium and death benefits accordingly. Universal life insurance gives more flexibility than whole life insurance

CONCLUSION

Life Insurance can be valuable tool in safeguarding the financial need for the future of the family or providing financial stability after the dismissal of the breadwinner of the family. By purchasing Life Insurance policies you can protect the future of your family when you are not around and optimize your savings and investments.