WHY DO YOU NEED LIFE INSURANCE?

In this article, we explain reasons why you may require/need a life insurance policy.

A life insurance policy allows the listed beneficiary of such policy to receive financial support in the event of the death of the policy holder.

With a life insurance, Insurance companies collect premium payments in exchange for providing financial support for your loved ones or anybody you chose when you are no more.

There are different types of life insurance policies. Read about the different types of Life Insurance policies here.

There are a number of situations where you may require a life insurance policy such as:

For couples who co-signed on a mortgage loan

For couples who cosign a mortgage loan, it will be in their best interest to get life insurance to cover any of them if one dies and the other can not afford to pay back the loan on his or her own.

Life Insurance for charity

For people that want to leave money behind for a particular person, whether related to them by blood or not, life insurance will make this happen.

Life Insurance For Parents

When a parent or, in some cases, both parents die the children might suffer financially to cater for themselves if they are still underaged. It’s is advisable for parents with underaged children to have life insurance.

For Elderly parents

An elderly parent who wants to leave money behind for his/her old age caregiving child can do so with a life insurance plan.

For special needs kids

Parents with special needs children will not always be there to cater financially for them.  With life insurance, they can rest assured that the child will be catered for when they pass.

For adults who cosigned a debt loan with them

Young adults whose parents cosigned, for example, a student loan with them will do well-having life insurance in case the debt gets too heavy for them to pay off should the parent pass away.

To get a lower premium rate

The younger you are the cheaper your life insurance premium rate will be. Adults in their 20s are usually healthier and fitter than Adults in their 60s so they stand less chance of dying. This makes their premium rates low.

For an important employee

Life insurance can be the lifesaver of a business organisation should a key member of the company dies. If the death of this key member means the company will suffer financially the business organisation might want to take a life insurance plan for that employee.

Funeral expenses

In the eventuality of one’s demise, he/she can use a life insurance policy to pay for the burial and funeral so that the people he/she left behind can mourn without the event’s financial burden.

Estate Taxes

Families with a large estate can use a life insurance policy to pay for their estate taxes.

As mentioned earlier, there are many  reasons why you may need to get a life insurance, and the general purpose is the same; to provide financial support to listed beneficiary  in the eventuality of death of policy holder.